HDFC Bank shares on a record breaking run, market cap tops Rs 14 lakh crore 

Shares of HDFC Bank are on a record breaking run. The banking stock hit its record high for the fourth straight session on Thursday. With today's rally, the market cap of the bank crossed the Rs 14 lakh crore mark for the first time ever on BSE and NSE. The stock has gained 5.4% in the last five sessions.

The stock hit its record high of Rs 1836.10 on Thursday amid a  big correction in the broader market. Market cap of the bank stood at Rs 14.01 lakh crore today.  

In the afternoon session, market cap of HDFC Bank stood at Rs 13.80 lakh crore on BSE. Total 1.74 lakh shares of the firm changed hands amounting to a turnover of Rs 32.11 crore on BSE. HDFC Bank stock has a one-year beta of 1. This signals the stock has average volatility.

In the previous three sessions, the stock hit record highs of Rs  1817.50 on November 27, Rs 1804.10 on November 26 and Rs 1801.90  on November 25. The stock crossed the Rs 1,800 mark for the first time ever on an intra day basis on November 25. 
This week, the rally in the banking stock was fuelled by an expected increase in the heavyweight lender’s MSCI index weightage, which is projected to draw $1.9 billion in inflows. The MSCI November 2024 index review came into effect from Monday. 

The banking stock is trading neither in the oversold territory nor in the overbought zone as the relative strength index (RSI) of HDFC Bank stands at 65.8.

However, the large cap stock is trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. HDFC Bank stock has a one-year beta of 1. This signals the stock has average volatility.
The stock has gained just 5.89% in 2024. The private sector lender could deliver 17.73% returns in a year. 

Brokerage Nirmal Bang has assigned a price target of over Rs 2,000 to the banking stock. 

HDFC Bank's core business is valued at 2.5 times September 2026E adjusted book value. Post adding subsidiary value per share of Rs 215.50 at 15 per cent holding company discount, the brokerage has derived a target price of Rs 2026 for HDFC Bank. 

"We believe this target multiple adequately captures a loan and earnings CAGR of 11.5 per cent and 11.9 per cent, respectively over FY24- FY27E, which results in RoA/RoE of 1.9 per cent/ 15 per cent in FY27E," Nirmal Bang said.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas is bullish on the stock. "HDFC Bank stock has broken out of a six month consolidation on the upside. Potential upside is seen with targets from Rs 1980 to Rs 2000. Strong support is placed at Rs 1720 - Rs 1700," said Gedia.