HDFC Bank Shares Jump 2.2%: Will They Rise Further Tomorrow? What Brokerages Say

Shares of HDFC Bank were in heavy demand on Wednesday, lifting the benchmark indices Sensex and Nifty to record highs. The stock rose over 2 per cent and added Rs 28,758.71 crore to its market valuation.

Shares of the country’s largest private sector lender climbed 2.18 per cent to settle at Rs 1,768.35 apiece on the BSE. During the day, it jumped 3.54 per cent to Rs 1,791.90 — its 52-week high level. On the NSE, it rallied 2.14 per cent to Rs 1,767.70 per share.

HDFC Bank alone contributed 249.03 points to the 30-share BSE Sensex smart rally on Wednesday.

The jump in HDFC Bank’s shares on Wednesday came after the lender reported the June 2024 quarter shareholding data which showed that the FII ownership fell to 54.8 per cent. This development assumes significance as 55 per cent is the upper threshold by global index provider MSCI for the full inclusion of the stock in its indices.

According to market experts, HDFC Bank’s weightage will now increase from 3.8 per cent to 7.2 per cent-7.5 per cent in the next MSCI’s rebalancing likely in August.

“This will push stock to gain further, as the latest development is expected to lead to $3-6.5 billion buying in the stock,” said a market analyst.

The company’s market valuation on Wednesday climbed Rs 28,758.71 crore to Rs 13,45,382.31 crore.

HDFC Bank’s Share Price: What Analysts Say

Siddhartha Khemka, head (retail research) at Motilal Oswal Financial Services Ltd, said, “Private banks saw healthy buying after HDFC Bank released its Q1 FY25 shareholding data, wherein the FII ownership has declined to 54.8 per cent, below the 55 per cent mark, indicating greater MSCI inflows.”

HDFC Bank Shares: Brokerage Recommendations

Jefferies has maintained a buy call on HDFC Bank with a target price of Rs 1,880, compared with Rs 1,768.35 apiece on Wednesday.

It also said strong deposit growth and improving net interet margins should be key drivers in the medium term.

Another brokerage UBS has also maintained a ‘buy’ recommendation on HDFC Bank with a target price of Rs 1,900.

The 30-share BSE Sensex on Wednesday hit the historic 80,000 mark for the first time earlier in the day. It surged 632.85 points or 0.79 per cent to hit a record intraday high of 80,074.30. The benchmark later ended near the 80,000 level at 79,986.80, up by 545.35 points or 0.69 per cent.

The Nifty climbed 162.65 points or 0.67 per cent to an all-time high of 24,286.50. During the day, it zoomed 183.4 points or 0.76 per cent to hit a fresh intraday record peak of 24,307.25.

Meanwhile, other banking stocks — Kotak Mahindra Bank, Axis Bank, IndusInd Bank and State Bank of India — also ended higher.