HDFC Bank Share Price Crash Results in ₹1 Lakh Crore Market Capitalization Erosion

HDFC Bank Share Price Crash Erodes Investor Wealth

Market Capitalisation Briefly Drops Below ₹12 Lakh Crore HDFC Bank's share price plummeted 8% to a 52-week low of ₹772 on the BSE today, resulting in a significant erosion of investor wealth. The bank's market capitalisation briefly dipped to ₹11.88 lakh crore, down from its last close of ₹12.96 lakh crore, leading to a loss of over ₹1 lakh crore.

Investor Sentiment Weakens The sharp decline in HDFC Bank shares has dealt a blow to all categories of investors, including mutual funds, foreign institutional investors (FIIs), and retailers. The bank's ADRs tumbled as much as 7% after the bank informed about the resignation of part-chairman Antanu Chakraborty in a late-night filing.

Notable Shareholders Suffer Significant Losses The top shareholders affected by the share price crash include:

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• Government of Singapore: suffered a loss of ₹2,150 crore for its 2.27% stake in the lender
• Vanguard: lost ₹1,176 crore for its 1.24% shares of HDFC Bank
• Government Pension Fund Global (Norway's sovereign wealth fund): suffered a notional loss of ₹1,151.27 crore for its 1.22% stake in HDFC Bank
• Life Insurance Corporation of India (LIC): lost ₹4,510 crore for its 4.77% stake in HDFC Bank
• Mutual fund investors: bore a total loss of ₹25,209 crore
• Retail investors: suffered a loss of ₹8,900 crore for their 9.41% stake in the private lender

HDFC Bank Board and RBI Allay Concerns The HDFC Bank board, led by interim chair Keki Mistry, attempted to ease concerns about the resignation of Antanu Chakraborty in a conference call. The Reserve Bank of India (RBI) also assured that the lender remains well-capitalised and its financial position is satisfactory.

Share Price Outlook Technical charts indicate a negative trend, with HDFC Bank stock breaking below all major short-term and long-term moving averages. The immediate support zone is seen as a stop-loss for existing positions at ₹750, while any bounce is likely to face resistance near the recent supply zone at ₹850.