Foreign investors dumped ₹43,000cr HDFC Bank shares in March quarter
What's the story
Foreign institutional investors (FIIs) sold HDFC Bank shares worth ₹43,085 crore during the March quarter. This is a staggering 30% of the total net cash sales of FIIs during the quarter. The massive sell-off was triggered by a combination of factors including geopolitical tensions and the sudden resignation of Atanu Chakraborty as part-time chairman on March 18.
Stock performance
HDFC Bank's share price fell by 26% in Q4 FY26
HDFC Bank's shares fell by a whopping 26% during the March quarter, closing at ₹731.55 on the NSE. The bulk of this decline—17.6%—was witnessed in March alone, amid the ongoing war and Chakraborty's departure. The Bank Nifty sectoral index, which includes HDFC Bank, also lost 15.62% during this period but still outperformed its largest constituent company.
Analyst outlook
JP Morgan upgraded HDFC Bank to overweight on March 27
Despite the steep fall in its share price, JP Morgan upgraded HDFC Bank from neutral to overweight on March 27. The upgrade was based on a favorable risk-reward ratio, improved loan growth, and better deposit mobilization. The stock has taken a hit from the broader market sell-off, with the decline accentuated by the recent resignation of the chairman, said JP Morgan's report.