India’s second most-valued stock, HDFC Bank, faced a significant market downturn, witnessing an 8.5% fall – its worst daily performance since the Covid crash three years ago. This slump resulted in investors in the blue-chip losing over Rs 1 lakh crore, with the market capitalization of this Nifty heavyweight dropping to Rs 11.67 lakh crore.
Performance Metrics:
- Fall Percentage: 8.5%
- Market Capitalization Post-Fall: Rs 11.67 lakh crore
Historical Context:
- Previous Worst Fall: Recorded during the Covid lows on March 23, 2020, with a loss of 12.7%.
Factors Contributing to the Fall:
- Quarterly Results Disappointment:
- The decline followed disappointment in the December quarter results.
- Several brokerages lowered their target prices on the stock.
- Q3 Performance:
- Profits increased by 33% YoY to Rs 16,373 crore.
- Boosted by a one-off write-back of Rs 1,500 crore of tax provisions.
Analyst Commentary:
- Santanu Chakrabarti of BNP Paribas stated:
- Net Interest Margin (NIM) at 3.7% met expectations but remained flat sequentially.
- Disappointment centered around flat yields on interest-earning assets despite liquidity drawdown and a reduction in lower-yield wholesale loans.
Related Articles
-
-
-
-
-
-
