HDFC Bank’s stock has hit a new 52-week high, trading at ₹1,837.40 on the National Stock Exchange (NSE). This marks a significant milestone for the private sector lender, which has seen strong investor confidence lately. The surge in share price comes after a combination of positive market developments and the bank’s solid financial performance.
One of the key factors contributing to the rise is the recent MSCI Index rebalancing. The adjustment, which took effect in late November 2024, included HDFC Bank in the Emerging Markets Index. This move attracted considerable passive inflows, with an estimated $1.9 billion being funneled into the stock as global fund managers rebalanced their portfolios.
Latest quarterly earnings
The bank’s latest quarterly earnings also played a crucial role. For the quarter ending September 2024, HDFC Bank reported a net profit of ₹16,821 crore, which was a 5.3% increase compared to the same period last year. Additionally, net interest income grew by 10%, reaching ₹30,110 crore, and the bank’s balance sheet expanded to ₹36.88 lakh crore. These results reflect the bank’s strong operational performance and growth prospects.
Furthermore, the broader market rally has provided additional tailwinds for HDFC Bank’s share price. Positive political developments and gains in major index stocks have boosted market sentiment, making investors more optimistic about the bank’s future.
With its stock reaching a new high, HDFC Bank’s performance is drawing attention from investors looking to capitalize on its growth. The combination of strong financial results and favorable market conditions has made the bank a top pick for many in the market.
