HDFC Bank Shares Decline 1.7% Amid Market Rebound Following Chairman's Departure

HDFC Bank Shares Extend Losses Despite Broader Market Rebound

On Friday, HDFC Bank shares continued their downward trend, falling 1.7 percent in opening trade as the broader markets rebounded sharply. The stock traded at Rs 784.75, down 1.69 percent from the previous close of Rs 800, and was among the top losers on the Nifty 50 in early trade.

The decline comes after the stock had already fallen 5.1 percent in the previous session, following the sudden resignation of part-time chairman Atanu Chakraborty, who cited differences over "values and ethics", raising concerns around governance. However, regulatory and management reassurances have helped limit deeper downside concerns.

The Reserve Bank of India (RBI) has stated that there are "no material concerns" regarding the bank's governance or conduct, while also approving the appointment of Keki Mistry as interim part-time chairman for three months to ensure continuity. Brokerages have largely retained a constructive stance on the stock despite the near-term volatility.

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Jefferies maintained its 'buy' rating with a target price of Rs 1,240, implying about 55 percent upside from Thursday's closing price, stating that corporate governance is "not compromised" and that continuity in leadership should ease concerns. Motilal Oswal Financial Services reiterated its 'buy' rating with a target price of Rs 1,100, citing the RBI's endorsement of governance standards and the absence of any prior regulatory or operational issues flagged to the board.

Analysts believe that while sentiment may remain under pressure in the near term due to governance-related headlines, regulatory comfort and stable operating performance could help anchor the stock's medium-term outlook.