Shares of HDFC Bank Ltd, India's largest private sector lender, saw a significant recovery on Tuesday, rising over 3% after hitting a fresh 52-week low just days prior. The banking stock, which touched Rs 682 on September 11, 2026, closed at Rs 708 that day, and then climbed 3.14% from Friday's close to reach Rs 730.30 in the latest trading session, signaling renewed buying interest at lower valuations. The bank's market capitalization concurrently surged to Rs 11.08 lakh crore.
Reasons Behind the Rebound
The upward movement in HDFC Bank's stock price comes after the bank's board officially submitted a list of two candidates to the Reserve Bank of India (RBI) for consideration as Managing Director & Chief Executive Officer (MD & CEO) for a three-year tenure. This development appears to have instilled some confidence among investors, contributing to the stock's recent rally.
Analyst's Technical Outlook
Despite the recent uptick, Shitij Gandhi, AVP - Equity Technical Research at SMC Global Securities, noted that HDFC Bank's technical chart still reflects a prevailing bearish trend. The stock has been forming lower highs and lower lows within a descending channel, with its price action remaining below key moving averages, indicating sustained selling pressure.
"The recent rebound from the Rs 680–685 support zone suggests some buying interest, but the broader structure remains weak," Gandhi stated. "Immediate trend line resistance is placed near Rs 720–725 levels, while a stronger hurdle exists around Rs 745–750. On the downside, Rs 700 level is an immediate support level, followed by Rs 680–685, which coincides with the lower channel boundary. A decisive breakout above Rs 725 could trigger recovery, while a breach of Rs 680 may extend the decline."
Financial Performance Highlights
HDFC Bank has demonstrated robust financial growth, clocking a compounded annual growth rate (CAGR) of 21% in net profit over the last five years. For the first quarter of fiscal year 2026 (Q1 FY26), the bank reported a 12% rise in standalone net profit, reaching Rs 18,155 crore, up from Rs 16,175 crore in Q1 FY25.
However, the bank's asset quality saw some shifts during the June quarter of FY26. The gross Non-Performing Assets (NPA) ratio increased to 1.40% from 1.33% in the June 2024 quarter. Similarly, the net NPA ratio rose to 0.47% in the last quarter, compared to 0.39% in the June 2024 quarter and 0.43% in the March 2025 quarter.