Shares of HDFC Bank Ltd registered a new 52-week low on Thursday, August 27, 2026, as the stock slipped to Rs 710 during trading hours. The counter eventually settled at Rs 712 on the BSE, marking a 2.08% decline for the day. This downturn continues a challenging period for India's largest private sector bank, with its stock plummeting 28.14% year-to-date and 26.83% over the past year. Longer-term performance also shows negative returns across two, three, and five-year horizons.
Market Experts Weigh In on HDFC Bank's Performance
Several market analysts have expressed concerns about HDFC Bank's near-term trajectory, with many forecasting further declines or a period of consolidation. Gaurav Sharma, VP and Head of Research at Globe Capital, stated that issues continue to mount for the bank, leading him to advise clients against averaging down or making fresh purchases. Sharma projects the stock could fall further to the Rs 675-680 range in the coming weeks or months.
Mayuresh Joshi, Head of Equity Research at William O'Neil India, highlighted the bank's stagnant performance over the last five years. He pointed to market beliefs regarding potential excessive unsecured lending, which could lead to asset quality pressures in upcoming quarters. Joshi also noted a significant mismatch between the growth prospects the market anticipated and the bank's actual delivery.
Reasons for Downside Pressure
The primary concerns driving the negative sentiment around HDFC Bank shares include:
- Unsecured Lending: Fears of excessive unsecured lending and its potential impact on asset quality in future quarters.
- Growth Mismatch: A perceived gap between the market's expectations for growth and the bank's actual performance.
- Lack of Momentum: The stock's inability to generate positive returns over medium to long-term periods.
Technical Outlook and Long-Term View
Aditya Agarwal, Head of Investment at Coherent Wealth, described the stock as looking "quite weak" and does not anticipate a significant upward movement soon. He suggested a time-wise correction, identifying Rs 680-675 as a crucial support zone and Rs 780-785 as resistance. Agarwal expects a period of consolidation before any fresh upward trend emerges.
Despite the prevailing bearish sentiment, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, offered a nuanced perspective. While acknowledging that the stock would likely remain under pressure in the short to medium term, he advised long-term investors to consider buying HDFC Bank shares on dips, suggesting potential value for those with an extended investment horizon.
"HDFC Bank has done nothing over the last five years. Therefore, I think there is a part of the market that believes there might be some excessive lending, specifically when it comes to unsecured lending, where asset quality pressures might start building up over the next few quarters."
— Mayuresh Joshi, Head of Equity Research at William O'Neil India