HDFC Bank Share Price Drops to Rs. 1,962.10, Down 1.46% Amid Volatility

Overview

• HDFC Bank stock declined 1.46% to Rs. 1,962.10 despite robust fundamentals and strong trading volumes of over 3.42 million shares.

• First-ever 1:1 bonus issue scheduled for August 26 has increased market excitement and investor activity.

• Analysts remain bullish, with Jefferies assigning a Rs. 2,400 target price, citing strong fundamentals and potential value unlock

HDFC Bank share price today witnessed volatile trading on the BSE and NSE at press time. The decline came as investors shifted focus to the lender’s much-awaited bonus issue. The stock slipped 1.46% to trade at Rs. 1,962.10, compared to its previous close of Rs. 1,991.20. The movement came amid heavy volumes of more than 3.42 million shares, with a total value traded at around Rs. 6,723 crore.

The volatility in HDFC Bank’s share price is largely driven by investor positioning ahead of the record date for its 1:1 bonus issue, scheduled for August 26. This is the bank’s first-ever bonus issue, under which shareholders will receive one additional equity share for every share they already hold.

Current Performance

On August 22, HDFC Bank shares opened at Rs. 1,989.90 but quickly slipped to the day’s low of Rs. 1,957.10. Meanwhile, the intraday high was recorded at Rs. 1,996. The stock’s VWAP (Volume Weighted Average Price) stood at Rs. 1,972.55, indicating sideways trading pressure.

HDFC Bank share price chart on TradingView shows a loss of 1.31%:

The bank’s market capitalization remains robust at Rs. 15.06 lakh crore, underlining its position as one of India’s most valuable financial institutions. Its 52-week high currently stands at Rs. 2,037.70, while the 52-week low is at Rs. 1,613. Hence, it gives investors a relatively wide trading band to work with.

Financial Indicators

On the valuation front, HDFC stock looks stable. Its TTM EPS stands at Rs. 91.93, reflecting a 2.6% year-on-year growth. The TTM P/E ratio is at 21.34, slightly above the sector average of 20.09, while the P/B ratio is at 2.91, considered relatively low.

The book value per share is recorded at Rs. 674.72, with a dividend yield of 1.12%, providing steady income for long-term investors. The bank’s beta of 0.91 indicates that the stock is less volatile than the broader market, making it attractive for investors seeking stability in their portfolios.

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Analyst Ratings and Target Price

Brokerages remain bullish on HDFC Bank shares. Moneycontrol data shows 74% of 39 analysts recommending a ‘Buy’, and another 21% suggesting ‘Outperform’. Only 5% maintain a ‘Hold’ stance. Global brokerage firm Jefferies recently reiterated its ‘BUY’ rating on HDFC Bank share price, assigning a target of Rs. 2,400. The optimism stems from the bank’s strong fundamentals, stable earnings growth, and the potential value unlocked from the upcoming bonus issue.

Technical View

From a technical standpoint, Moneycontrol data further shows that HDFC Bank’s pivot point (PP) is at Rs. 1,990.63. The immediate support levels are Rs. 1,983.77 (S1) and Rs. 1,976.33 (S2), while resistance is seen at Rs. 1,998.07 (R1) and Rs. 2,004.93 (R2). If the stock sustains momentum above Rs. 2,000, analysts suggest it could retest the Rs. 2,037 level, which is also its all-time high.

Market Outlook

The upcoming bonus issue has added a fresh layer of excitement for HDFC Bank investors, with many retail participants likely to increase exposure before the record date. While near-term volatility is expected due to profit-booking and market adjustments, the long-term outlook remains optimistic.

Strong fundamentals, consistent earnings, and supportive analyst recommendations make HDFC Bank shares a solid pick for both institutional and retail investors. As the countdown to the bonus issue begins, market watchers will closely track whether the stock can sustain momentum and break past its 52-week highs in the coming sessions.

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FAQs

1. Why did HDFC Bank’s share price fall on August 22, 2025?

HDFC Bank’s stock fell 1.46% to Rs. 1,962.10 as traders adjusted positions ahead of the bank’s upcoming 1:1 bonus issue. The fall was also influenced by profit booking and heavy volumes exceeding 3.42 million shares, reflecting heightened market activity.

2. What is the significance of HDFC Bank’s 1:1 bonus issue?

The 1:1 bonus issue is HDFC Bank’s first-ever. It means investors will receive one additional share for every existing share they hold. This move increases liquidity in the stock and is often seen as a reward for shareholders, though it doesn’t directly impact the company’s valuation.

3. How does HDFC Bank’s valuation look compared to the sector?

HDFC Bank’s TTM P/E stands at 21.34, slightly above the sector average of 20.09, reflecting a premium valuation due to strong fundamentals. Its P/B ratio of 2.91 is relatively low, while steady earnings growth and a dividend yield of 1.12% provide stability for long-term investors. 

4. What are analysts’ views on HDFC Bank shares right now?

Analysts remain highly bullish, with 74% recommending a “Buy” and Jefferies setting a target of Rs. 2,400. The optimism comes from stable earnings, robust fundamentals, and the expected value unlock from the bonus issue. Only a small minority of analysts suggest holding the stock.

5. What are the technical levels investors should track?

Technically, HDFC Bank’s pivot point is at Rs. 1,990.63. Support levels lie at Rs. 1,983.77 and Rs. 1,976.33, while resistance is seen at Rs. 1,998.07 and Rs. 2,004.93. If the stock sustains above Rs. 2,000, analysts believe it could retest Rs. 2,037, which is both its 52-week and all-time high.