HDFC Bank's share price surged to a new all-time high on Tuesday, buoyed by strong investor demand and positive market sentiment. The stock rose by 1.8%, reaching ₹1,837.40 per share on the NSE.
This marked a fresh peak, as the bank's market capitalisation surpassed ₹14 lakh crore, a milestone that reaffirms its dominant position in the Indian banking sector. With growing confidence in the stock, it remains a prime consideration for share market investment.
Significant block deal boosts HDFC Bank stock
On December 3, HDFC Bank also saw a notable block deal involving 21.7 lakh shares. While the specific buyers and sellers of the deal have not been disclosed, the transaction was valued at approximately ₹392 crore, based on the previous closing price of ₹1,804.70. This deal adds to the positive momentum around the bank's stock, reinforcing its strength in the market. Earlier in November, HDFC Bank's market cap briefly surpassed ₹14 lakh crore before dipping below that threshold, following profit-taking in broader market conditions.
Stock price performance and growth
HDFC Bank's stock has been on an upward trajectory, delivering strong returns to investors. Over the past month, the stock has risen by more than 5%, and in the past three months, it has gained over 12%. On a year-to-date (YTD) basis, the stock has appreciated by 7%, and in the last 12 months, it has climbed nearly 18%. This consistent growth highlights the bank's resilience and the growing interest in its shares, making it an attractive option for share market investment.
MSCI rebalancing drives positive sentiment
The recent rally in HDFC Bank's shares can also be attributed to its increased weightage in the MSCI Emerging Markets Index following the November-end rebalancing. This adjustment has attracted substantial passive inflows, with an estimated $1.9 billion flowing into the stock. The rebalancing is part of a broader strategy to increase HDFC Bank's presence in the index, which was outlined in the MSCI review earlier this year. As a result, the stock has seen heightened investor attention, further supporting its upward momentum.
HDFC Bank's strong financial performance
HDFC Bank's financial performance for the quarter ending September 2024 shows a steady growth trajectory. The bank reported a 5.3% increase in standalone net profit, reaching ₹16,821 crore, up from ₹15,976 crore in the previous year. Net interest income (NII) grew by 10%, reaching ₹30,110 crore compared to ₹27,390 crore a year ago. The bank's net interest margin (NIM) also showed stability, at 3.46% for total assets and 3.65% for interest-earning assets, slightly improving from the previous quarter.
Conclusion
HDFC Bank’s record-breaking share price and growing market capitalisation reflect its solid financial health and investor confidence. As the bank continues to build on its strong fundamentals, it remains an appealing choice for those looking to make a share market investment. With both technical and financial indicators aligning in its favour, HDFC Bank looks set to continue its upward momentum in the coming months.
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