HDFC Bank shares slide nearly 30% from peak, hit 52-week low
The stock has now lost nearly 28% over the past year and is down over 27% year-to-date, sharply underperforming the Nifty 50, which is down roughly 7.83% YTD
HDFC Bank shares plummeted nearly 30% from their peak, reaching a 52-week low of ₹718.10, according to the latest data from the National Stock Exchange (NSE). The stock experienced a rollercoaster ride, opening at ₹724 and briefly soaring to ₹725.40, before succumbing to selling pressure and plummeting to its intraday low. In the trading session, a total of 61.68 lakh shares changed hands, generating a traded value of ₹444.17 crore.
As of now, the stock's market capitalisation stands at approximately ₹11.07 lakh crore, representing a significant decline of around 28% over the past year and a steep drop of over 27% year-to-date. This performance has been notably underwhelming, trailing the Nifty 50, which has only dipped by roughly 7.83% year-to-date. Over the medium to long term, HDFC Bank's returns have been notably dismal, with a negative 9.59% return over three years and a negative 4.94% over the past five years.
In stark contrast, the Nifty 50 has seen gains of 24.80% and 45.45% respectively over the same periods. This divergence is particularly striking given that HDFC Bank has long been viewed as a benchmark for India's financial sector. Recent analysts' comments suggest that the broader banking sector has been grappling with a compression in net interest margins (NIM), which has shrunk by 14 basis points in the current cycle.
While most banks have seen a decline in NIM on a quarter-on-quarter basis, return on assets and return on risk-weighted assets have maintained a relatively steadier trajectory, a factor that analysts believe the market may be undervaluing. Moreover, FCNR deposit inflows are anticipated to bolster system deposit growth to approximately 13.5% for the fiscal year 2027.
This influx is expected to enhance deposit quality, a sentiment that analysts believe could benefit HDFC Bank, which currently holds the second position on proprietary franchise scorecards, trailing only ICICI Bank. The stock's annualised volatility is reported at 25.79%, while the applicable margin rate is set at 12.50%.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- ICICI Bank shares slip 0.52% in early trade, despite yearly gains thehindubusinessline.com
