This marks the second consecutive trading session of losses for HDFC Bank shares. Over the past two days, the stock has declined nearly 6%, mirroring the broader weakness in financial stocks amid global uncertainty.
The broader banking pack also witnessed heavy selling. The Nifty Bank index declined over 4%, with all 14 banking stocks trading deep in the red, reflecting widespread risk-off sentiment among investors.
HDFC Bank stock down 20% from its 52-week high
HDFC Bank shares are now trading about 20% below their 52-week high of Rs 1,020.50. At current levels, the lender commands a market capitalisation of roughly Rs 12.78 lakh crore, maintaining its position among India’s largest companies by market value.
Technical indicators suggest oversold conditions
From a technical perspective, the stock is showing signs of being oversold. According to Trendlyne data, the 14-day Relative Strength Index (RSI) stands at 27.2. An RSI reading below 30 typically indicates oversold conditions, which could potentially lead to a short-term rebound if buying interest returns.
However, the technical trend remains weak for now. HDFC Bank is trading below all eight key Simple Moving Averages (SMAs), indicating strong bearish momentum in the near term.On the valuation front, the stock is currently trading with a price-to-earnings (P/E) ratio of 18.12 and a price-to-book (P/B) ratio of 2.53, reflecting its market price relative to both earnings and book value.
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Strong quarterly performance
HDFC Bank reported solid financial results in the December 2025 quarter. The bank posted a net profit of Rs 18,654 crore, marking a year-on-year growth of 11.5%.
The latest shareholding data for the December 2025 quarter indicates a modest change in institutional ownership. Foreign Institutional Investors (FIIs) slightly reduced their stake from 48.38% to 47.67%, while mutual funds increased their holdings from 26.02% to 26.66%, signalling a gradual rise in domestic institutional participation.
Analysts remain optimistic about the bank’s long-term outlook. According to Trendlyne’s forecast, the consensus recommendation from 38 analysts for HDFC Bank is “Strong Buy”. The average target price implies an upside potential of about 38.6% from current levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times.)