What is the story about?
HDFC Bank Share Price : Shares of HDFC Bank declined nearly 1 per cent on Monday, January 12, marking the sixth consecutive session of losses as the stock
remained under pressure. The BSE Sensex constituent was down by nearly Rs 8.7 to trade around Rs 930. During the session, the stock touched an intraday low of Rs 929.55, reflecting a downside of nearly 1 per cent from its previous close of Rs 938.70.
HDFC Bank's short-term weakness
HDFC Bank stock has shown mixed performance across different time horizons, with sustained weakness in the short term. The stock has declined 4.86 per cent over the past week, 6.19 per cent over two weeks, and nearly 7 per cent over the last month. Over the medium term, it has fallen 5.17 per cent over three months and 6.21 per cent over six months, while year-to-date, the stock is down 6.12 per cent.HDFC Bank's long-term performance remains resilient
Despite the recent correction, HDFC Bank’s long-term performance remains strong. The stock has gained 12.26 per cent over the past year, 13.46 per cent over two years, and 16.29 per cent over three years. Over a longer horizon, it has risen 25.59 per cent in five years and delivered an impressive return of 254.50 per cent over the last decade.Geopolitical uncertainty and market weakness impact sentiment
The decline in HDFC Bank shares comes amid weakness in the broader equity market, largely driven by heightened geopolitical uncertainty.On the global front, US President Donald Trump stated that Iran appears to have crossed a “red line” in its handling of widespread protests across several provinces and warned of taking “strong options.”
Such developments tend to increase risk perception among investors, leading them to shift away from equities toward safer assets, thereby pressuring stock markets.
Investor caution ahead of Q3 results
Investor sentiment also remained cautious ahead of HDFC Bank’s third-quarter results, which are scheduled to be announced later this week on January 17. Market participants are closely watching the earnings and management commentary, as they are expected to provide guidance on the bank’s performance outlook in the coming quarters.Analyst View: Wait for post-results clarity
According to market analyst Avinash Gorakshakar told ET Now Swadesh that investors should avoid rushing into the stock at current levels. He noted that HDFC Bank has corrected further and said that clarity is likely to emerge only after the Q3 results, particularly from the management’s commentary.He added that better visibility is expected post the earnings announcement and suggested ICICI Bank and Federal Bank as preferred picks over HDFC Bank for now.
Nifty Bank index trades in the red
On the sectoral front, the Nifty Bank index, which tracks the most liquid and large-cap banking stocks, was trading 0.5 per cent lower, down 344 points at 58,907.85 as of 11:55 am. Out of the 14 constituents in the index, most stocks were trading in the red, while only ICICI Bank and IndusInd Bank were trading in positive territory.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
