HDFC Bank Shares Fall Over 4% to 52-Week Low Amid Banking Sector Sell-Off; Kotak Upgrades Stock to ‘Buy’
Shares of HDFC Bank declined sharply on 9 March 2026, falling more than 4% during intraday trading and touching a new 52-week low. The stock slipped to around ₹821.50 on the NSE as heavy selling pressure hit banking stocks across the Indian market.
The fall in HDFC Bank’s share price also dragged the broader banking index lower. The Nifty Bank index dropped significantly, with all major banking stocks trading in the red during the session.
The decline reflects a broader risk-off sentiment in financial markets, driven by rising geopolitical tensions and global economic uncertainty. Investors moved away from banking and financial stocks amid fears of higher inflation and volatility in global markets.
Over the past two trading sessions alone, HDFC Bank shares have fallen nearly 6%, signalling sustained selling pressure in the stock.
Global Market Volatility and Oil Price Surge Weigh on Banking Stocks
The sharp fall in HDFC Bank’s stock came amid a broader decline in Indian equities triggered by global developments. Escalating geopolitical tensions in West Asia and rising crude oil prices have unsettled financial markets worldwide.
Higher crude oil prices have raised concerns about inflation and the possibility that central banks may delay interest-rate cuts. This has particularly affected banking stocks, which are sensitive to interest-rate expectations and macroeconomic outlook.
The weakness was visible across the banking sector, with private and public sector banks witnessing heavy selling. The Nifty Bank index reportedly declined more than 4%, reflecting a broad-based decline across the sector.
The broader Indian equity market has also been under pressure due to global uncertainty and rising oil prices, which could increase the country’s import bill and inflation risks.
Stock Now About 20% Below Its 52-Week High
With the latest decline, HDFC Bank shares are now trading roughly 20% below their 52-week high of around ₹1,020.50. Despite the fall, the bank remains one of the largest listed companies in India with a market capitalisation of nearly ₹12.8 lakh crore.
Technical indicators also show that the stock may be in oversold territory. The Relative Strength Index (RSI) for HDFC Bank has fallen to around 27, which typically suggests that the stock has been heavily sold and may see a potential rebound if buying interest returns.
However, the near-term technical trend remains weak. The stock is currently trading below several key moving averages, indicating bearish momentum in the short term.
Kotak Institutional Equities Upgrades HDFC Bank to ‘Buy’
Despite the recent fall, analysts remain optimistic about the bank’s long-term outlook. Kotak Institutional Equities recently upgraded HDFC Bank’s rating to “Buy”, citing attractive valuations after the sharp correction in the stock price.
Kotak has set a target price of around ₹1,050, implying a potential upside of roughly 25% from current levels. The brokerage believes the correction has created a favourable entry point for long-term investors.
However, analysts also noted that a strong re-rating of the stock will depend on clearer improvement in the bank’s deposit growth and margins in the coming quarters.
Strong Financial Performance but Short-Term Market Pressure
Despite the recent volatility in its share price, HDFC Bank’s underlying financial performance remains stable. The bank reported a net profit of ₹18,654 crore for the December 2025 quarter, marking a year-on-year growth of about 11.5%.
Institutional shareholding data also shows steady domestic participation, with mutual funds slightly increasing their stake in the bank.
For now, analysts believe the stock’s near-term movement will largely depend on global market trends and investor sentiment towards the banking sector. However, many market experts still view HDFC Bank as a fundamentally strong lender with long-term growth potential.