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HDFC Bank shares fall 10% in 5 days, buy, sell or hold? Know the opinion of experts

Shares of HDFC Bank fell more than 3 per cent to Rs 1,348.05 on BSE today.
HDFC Bank: In today’s trading, HDFC Bank’s stock fell more than 3 percent to Rs 1,348.05 on BSE. The stock has lost more than 15 percent in the last 9 days and nearly 10 percent in 5 days. In comparison, the S&P BSE Sensex has lost 3 per cent in the last five days. Analysts say that even though the news of HDFC Bank merger was good and the results for the fourth quarter of FY 2022 were good, yet a sharp decline in the share price of HDFC Bank was seen due to the week market sentiment. Earlier this month, Housing Development Finance Corporation (HDFC) announced that it will merge with its subsidiary HDFC Bank.
What is the opinion of experts
  • Pavitra Shetty, Co-Founder and Trainer, Tips2Trades, told FE Online, “Technically, the stock looks attractive and the current range of Rs 1340-1360 can be used for higher targets of Rs 1600-1845 in the coming months ” HDFC Bank’s consolidated net profit jumped 24 per cent to Rs 10,474 crore in the fourth quarter. The profit of the bank has increased as compared to the previous year.
  • Analysts at Emkay Global Financial Services say the removal of RBI restrictions on cards or digital initiatives, management guidance to revive retail credit growth and focus on risk-adjusted margins should be positive in the long term. The research firm further said, “As far as the merger is concerned, HDFC and HDFC Bank will have time (2-3 years) to moderate the regulatory drag. Considering the recent correction, we have retained this stock’s buy advice for the long term.”
  • VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said there are some concerns about the marginal impact on the profits of the merged entity due to higher SLR and CRR requirements. (HDFC Ltd does not have statutory requirements like SLR and CRR) “HDFC Twins are attractive despite short term technical weakness from valuation perspective,” said Vijayakumar.
  • Animesh Malviya, Analyst, CapitalVia Global Research, told FE Online that HDFC Bank is a good investment option due to its excellent balance sheet growth and strong capital growth of 17.9% at Tier 1 level. Malviya said HDFC Bank has the lowest GNPA (percentage) in the sector, and the bank’s capital adequacy (18.9%) is sufficient to support 15-20% advance growth. Animesh Malviya said that HDFC Bank shares will be bought in the coming months.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews.in. Markets are risky, so take expert opinion before investing.)
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