HDFC Bank Shares Hit 52-Week Low Amid Market Volatility

HDFC Bank witnessed a two percent decline in its share price, plunging to a 52-week low during intra-day trading on Wednesday. 

Shares of the private lender were valued at ₹1369.00 at 1:30 pm after hitting an all-time low of ₹1,363. The stock has experienced a 20 percent drop since the beginning of the year.

HDFC Bank maintains its position

The bank’s shares opened at ₹1380, lower than the previous day’s close of ₹1,394. HDFC Bank maintains its position as the third most valued company by market capitalization, with a market capitalization of ₹10.39 lakh crore, trailing behind Reliance Industries and Tata Consultancy Services.

Market Sentiments:

The decline in HDFC Bank’s shares reflects broader market trends, with the Bombay Stock Exchange benchmark Sensex witnessing a significant drop of over 675 points earlier in the day. 

Negative cues from the global market, particularly concerning higher-than-expected inflation numbers in the US, have impacted investor sentiments.

HDFC Bank disclosed in a regulatory filing

Last week, HDFC Bank disclosed in a regulatory filing that it had obtained approval from the Reserve Bank of India (RBI) to accept up to a 9.5 percent stake in six lenders, including ICICI Bank and Axis Bank. 

These approvals were granted following applications submitted by the Bank to the RBI on December 18, 2023.

Financial Performance:

Despite market challenges, the Bank reported a 2.65 percent gain in consolidated net profit for the October-December period, amounting to ₹17,258 crore. 

The bank’s core net interest income grew to ₹28,470 crore during the quarter, with additional income reaching ₹11,140 crore.

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