HDFC Bank shares jump 4% to trade near 52-week high today; here's why

Shares of HDFC Bank Ltd shares climbed 3.84 per cent in Tuesday's trade to hit a high of Rs 1,875.90. At this price, the stock was just 0.22 per cent shy from its one-year high level of Rs 1,880, seen on December 9 last year.

Today's rise in the share price came after the country's largest private lender lowered savings account interest rate by 25 basis points (bps). Before this, HDFC Bank has reduced fixed deposit (FD) rates for longer tenures.

The step came shortly after the Reserve Bank of India (RBI) announced its second consecutive benchmark repo rate cut for the year, which currently stands at 6 per cent.

"In the banking space, we've seen deposit rate cut by HDFC Bank but there's no announcement on the lending rate so far. This is going to help the lender in terms of collection efficiency, which has likely improved a bit in March 2025," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Business Today.

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 66.03. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 21.59 against a price-to-book (P/B) value of 3.11. Earnings per share (EPS) stood at 86.57 with a return on equity (RoE) of 14.39. According to Trendlyne data, HDFC Bank has a one-year beta of 0.9, indicating low volatility.

The private lender is scheduled to announce its fourth quarter (Q4 FY25) results on April 19, 2025.