HDFC Bank shares rise as bond issue draw attention; Bank Nifty near resistance

On Monday morning, HDFC Bank's shares were marginally higher, trading at ₹728.60 on the NSE, up 0.23 per cent from its opening price of ₹732.50. The stock saw a session high of ₹734.40 and a low of ₹729.00, closing at ₹728.60. This comes after the bank announced on August 20 the completion of a $1,750 million overseas bond issue in Senior Unsecured Fixed Rate Notes, with a 3-year and 5-year maturity, respectively.

The bond issuance was rated Baa3/BBB (Stable) by Moody’s and S&P, and will be listed on India INX and NSE-IX. Despite a slight gain, HDFC Bank has underperformed over the year, down 26 per cent, trailing the Nifty 50, which has decreased by 2.44 per cent. The stock is currently trading at a P/E ratio of 14.18 with a market capitalization of approximately ₹11.23 lakh crore.

Sell-side pressure was evident in Monday's trading, with 68.54 per cent of the shares changing hands on the sell side compared to 31.46 per cent on the buy side. Meanwhile, the broader banking index, Bank Nifty, is trading above 57,800, with resistance around 58,000-58,200 and support at 57,500-57,400.