HDFC Bank Inches Up as Macquarie’s Upbeat View Lifts Sentiment; Stock Gives Up Intraday Gains

HDFC Bank shares traded slightly higher on Monday, supported by positive commentary from global brokerage Macquarie, even as the broader banking space lost momentum in late trade. The stock was up 0.19 percent at around ₹999.90, after briefly rising 1.3 percent to an intraday high of ₹1,011.45. With these moves, HDFC Bank has now gained 12 percent year-to-date, outpacing the Nifty’s 9.3 percent rise in the same period.

The gains, however, came against a backdrop of mixed sentiment across the banking sector. Earlier in the day, the Bank Nifty had shown strength, but the rally fizzled out as the session progressed. The index was flat at 58,867.70 around 3:10 pm, slipping nearly 450 points from the day’s peak of 59,309.9.

This intraday reversal highlighted emerging profit-taking across financial stocks despite a firm start.

Macquarie’s Positive Outlook Boosts Stock Sentiment

The biggest support for HDFC Bank came from Macquarie’s upbeat research note. The brokerage said it expects the private lender to deliver a strong earnings trajectory over the next two years. According to its projections, HDFC Bank could record 18–20 percent compound annual growth in earnings per share, supported by healthier loan growth and margin improvement.

Macquarie also believes that cost ratios may decline over the medium term, thanks to operational efficiencies that the bank continues to build post-merger.

In its latest update, Macquarie reiterated an ‘outperform’ rating on HDFC Bank and assigned a 12-month target price of ₹1,200 per share. The target implies a nearly 20 percent upside from current levels.

The brokerage also emphasized that HDFC Bank remains the highest-weighted stock in the Nifty 50, making it a critical driver of overall index performance and sentiment.

Also Read: Rupee at Record Low of 89.49: What This Means for Investors

Stock Gives Up Intraday Gains Despite Strong Institutional Backing

While Macquarie’s positive view helped the stock stay in the green, the overall mood in the banking sector weakened. The early optimism in the Bank Nifty lost steam, and HDFC Bank also surrendered part of its gains.

Still, the stock remained relatively stronger compared to its banking peers, which struggled to hold on to early advances. The broader market also saw profit booking from higher levels. By 3:10 pm, the BSE Sensex was down 306.6 points (0.4%) at 84,925.3, while the Nifty 50 was lower by 102 points at 25,966.1.

The broader sentiment suggested that investors may be taking some money off the table after a recent stretch of market gains, particularly in heavyweight financials.

Supportive Long-Term View vs Short-Term Volatility

The short-term pullback did little to dent the bank’s stronger year-to-date performance. HDFC Bank has been one of the leading contributors to index strength this year, and the renewed bullish stance from Macquarie further reinforces confidence in its long-term narrative.

Analysts believe the bank’s earnings visibility, improving growth metrics, and dominant index weight could keep it in focus for institutional investors, even during bouts of market volatility.

Despite giving up intraday gains, the share retained a positive relative bias, underscoring that fundamental optimism remains intact.

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