Shares of HDFC Bank, India's largest private sector lender, slipped to a 52-week low in early trading on Tuesday, breaching the Rs 700 mark. This marks the first time the stock has traded below this level since February 2024, when it briefly dipped to Rs 692.17 intraday, a level not seen in nearly two and a half years at that time.
The banking stock recorded a low of Rs 698.50 in the current session, bringing its market capitalization to Rs 10.92 lakh crore. The overall trend for HDFC Bank shares has been significantly bearish, with the stock consistently trading below its 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages.
CEO's Departure Fuels Investor Caution
A key factor contributing to the recent weakness in HDFC Bank's stock is the announcement that Sashidhar Jagdishan, the current MD & CEO, will not seek reappointment and is set to retire on October 26, 2026. The bank's board has indicated it will expedite the process for selecting and appointing his successor.
Brokerage firm Ashika highlighted that investors are likely to remain cautious until a new leader is identified. The incoming MD & CEO's profile, track record, and strategic vision are expected to play a crucial role in restoring investor confidence.
Analyst Price Targets and Outlook
Analysts are offering varied perspectives and price targets for HDFC Bank amidst the current market conditions:
- Virat Jagad, Senior Technical Research Analyst at Bonanza Portfolio, noted, "HDFC Bank remains in a downtrend and below major EMAs, indicating continued weakness. Major support is Rs 710; hold existing positions above this level, but a decisive breakdown below Rs 710 can be used to exit, with downside potential towards Rs 680–660 in coming days."
- Ashika maintains a 'buy' rating on the stock, setting a target price of Rs 959.
- Motilal Oswal also holds a 'BUY' rating, with a price target of Rs 925. The brokerage anticipates an improved earnings performance for HDFC Bank from fiscal year 2028 onwards, with a projected Return on Assets (RoA) sustaining at 1.8%.
Investors are advised to consult with a qualified financial advisor before making any investment decisions.