HDFC Bank shares might be showing 51% fall; here's what investors should do
HDFC Bank: The stock began trading ex-bonus on both BSE and NSE. The bonus issue entitled shareholders to one additional equity share for every existing share held. The move was aimed at improving liquidity and encouraging greater retail participation.
- Aug 26, 2025,
- Updated Aug 26, 2025 11:14 AM IST
Shares of HDFC Bank Ltd, the country's largest private sector lender by market capitalisation (m-cap), appeared to have fallen sharply on Tuesday, but the decline was mainly only technical in nature following the implementation of the lender's 1:1 bonus share issuance. The stock began trading ex-bonus on both BSE and NSE.
The bonus issue entitled shareholders to one additional equity share for every existing share held. The move was aimed at improving liquidity and encouraging greater retail participation.
Post-adjustment, HDFC Bank shares opened at Rs 982.20 on BSE, which was flat compared with the adjusted price. However, relative to Monday's unadjusted closing level of Rs 1,964.50, the stock seemed to have dropped 50.72 per cent, leading to some confusion among retail investors. Market participants pointed out that several trading platforms were still reflecting unadjusted prices, giving the impression of a steep fall.
Some analysts maintained that the stock's fundamentals remain unchanged.
"For retail investors, the price gets more affordable but fundamentals actually don't change. HDFC Bank, as a fundamental stock, will see things get better down the road. Aggressive growth may take a little more time, but these are the times when you should be buying blue chips like HDFC, which have proven to be strong growth stories over the long run," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today.
Echoing the sentiment, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Investors with a long-term view should definitely hold on to the stock and also consider accumulating it. Post the bonus issue, HDFC Bank looks more attractive."
On the technical side, an analyst suggested near-term consolidation. "The stock is trading near its lower band around Rs 965-970, which is a major support level. On daily and weekly charts, upside is capped for now. If the stock closes below this range, we may see a move towards Rs 955-960. So, overall capped upside with some downside open for the next couple of sessions," said Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services.
Shares of HDFC Bank Ltd, the country's largest private sector lender by market capitalisation (m-cap), appeared to have fallen sharply on Tuesday, but the decline was mainly only technical in nature following the implementation of the lender's 1:1 bonus share issuance. The stock began trading ex-bonus on both BSE and NSE.
The bonus issue entitled shareholders to one additional equity share for every existing share held. The move was aimed at improving liquidity and encouraging greater retail participation.
Post-adjustment, HDFC Bank shares opened at Rs 982.20 on BSE, which was flat compared with the adjusted price. However, relative to Monday's unadjusted closing level of Rs 1,964.50, the stock seemed to have dropped 50.72 per cent, leading to some confusion among retail investors. Market participants pointed out that several trading platforms were still reflecting unadjusted prices, giving the impression of a steep fall.
Some analysts maintained that the stock's fundamentals remain unchanged.
"For retail investors, the price gets more affordable but fundamentals actually don't change. HDFC Bank, as a fundamental stock, will see things get better down the road. Aggressive growth may take a little more time, but these are the times when you should be buying blue chips like HDFC, which have proven to be strong growth stories over the long run," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today.
Echoing the sentiment, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Investors with a long-term view should definitely hold on to the stock and also consider accumulating it. Post the bonus issue, HDFC Bank looks more attractive."
On the technical side, an analyst suggested near-term consolidation. "The stock is trading near its lower band around Rs 965-970, which is a major support level. On daily and weekly charts, upside is capped for now. If the stock closes below this range, we may see a move towards Rs 955-960. So, overall capped upside with some downside open for the next couple of sessions," said Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services.