HDFC Bank share price hits record high; market-cap crosses ₹14 lakh crore

HDFC Bank share price rallied over a percent to hit a fresh record high on Tuesday amid strong buying momentum. HDFC Bank share price touched its life-time high of ₹1,837.40 apiece on the NSE, gaining 1.8% from previous close.

HDFC Bank’s market capitalisation reclaimed ₹14 lakh crore-mark with today’s gains in share price.

HDFC Bank shares witnessed a block deal of 21.7 lakh shares on Tuesday, December 3, data from Bloomberg showed. The details of HDFC Bank shares block deal, including the buyers and sellers, are not available. However, according to HDFC Bank’s previous closing price of ₹1,804.70 apiece, the total value of HDFC Bank block deal would be worth around ₹392 crore.

The market cap of HDFC Bank had earlier touched ₹14.01 lakh crore on November 28, but later slipped below ₹14 lakh crore mark amid sharp profit-taking in the broader markets.

HDFC Bank Stock Price Trend

HDFC Bank share price has rallied over 5% in one month and more than 12% in three months. The stock of the largest private sector bank in India has gained over 7% year-to-date (YTD) and nearly 18% in one year.

MSCI Rejig

The recent gains HDFC Bank shares were also driven by the MSCI rebalancing, which took effect on November-end. HDFC Bank’s weightage in the MSCI Emerging Markets (EM) Index increased in its latest rebalancing, attracting an estimated $1.9 billion in passive inflows. This adjustment represents the second phase of a planned weightage increase, initially outlined in the MSCI review in August 2024.

HDFC Bank Financials

HDFC Bank reported a 5.3% increase in standalone net profit in the quarter ended September 2024 to ₹16,821 crore from ₹15,976 crore in the same period last year. The private lender’s net interest income (NII) in Q2FY25 grew by 10% to ₹30,110 crore from ₹27,390 crore, year-on-year (YoY).

The core net interest margin (NIM) of India's largest private lender by market value was 3.46% on total assets and 3.65% on interest-earning ones in the September quarter, compared to 3.47% and 3.66%, respectively, in the previous June quarter. HDFC Bank's total balance sheet increased to ₹36,88,100 crore, up from ₹34,16,300 crore year-on-year.

HDFC Bank Technical View

On the technical front, HDFC Bank broke out of a bullish cup-and-handle pattern.

Anshul Jain, Head of Research at Lakshmishree Investments and Securities noted that HDFC Bank achieved a remarkable breakout from a 72-week-long cup-and-handle formation on its weekly charts, signaling a strong bullish trend.

“The breakout at ₹1,790 levels has sustained on daily charts, reflecting robust market confidence in the HDFC Bank stock. For short-term traders, HDFC Bank stock is a compelling buy at ₹1,820, with a stop loss at ₹1,775, targeting a quick upside to ₹1,895. However, for long-term investors, this breakout suggests even greater potential. With a projected target of ₹2,050, the pattern’s implications are set to unfold over the next 24-30 weeks,” said Jain.

According to him, both technical and fundamental factors align to make HDFC Bank an attractive opportunity in the current market, highlighting its strength as a growth-centric investment.

At 11:20 AM, HDFC Bank shares were trading 1.68% higher at ₹1,834.90 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.