Today in Indian markets, Akshay Bhagwat and analysts say HDFC Bank shares trade in a defined band with limited near-term upside. They expect the stock to move between Rs 900 and Rs 970 (about $11–$12) and advise holding with a stop loss at Rs 895 (about $11).
Nifty50 momentum is building, with a strong base seen near 25,500 and 26,000 as the immediate hurdle. “The index is catching up momentum and 26,000 is the first immediate barrier. Overall, the market view remains positive and Nifty may revisit its lifetime highs.”
Analysts cite a cautious trading corridor from JM Financial, which expects the stock to remain within Rs 900–970 (about $11–$12). Traders are watching for breakout signals during this consolidation.
Sector dynamics show public sector banks outpacing private peers in loan growth (Ed. note: this was an unexpected development). “Deposit growth, however, remained relatively subdued at ~10% YoY with PSBs continuing to lag private peers, resulting in a 270 bps QoQ spike in PSBs’ CD ratio (versus ~60 bps for private banks)”
Private banks face margin and operating expense pressures that clipped PPOP growth. “PSBs also turned in stronger PPOP growth on the back of higher treasury gains, recoveries and limited labour code impact, whereas private banks’ PPOP growth moderated due to reduced other income and relatively higher opex pressure.”
In its sector ratings, JM Financial assigns an “Add” to HDFC Bank, Federal Bank, and Bandhan Bank, and “Buy” ratings to ICICI Bank, Axis Bank, State Bank of India, Ujjivan SFB, City Union Bank, and DCB Bank.
