HDFC Bank shares hit all-time high

Shares of HDFC Bank , the country’s most valued private lender in terms of market capitalisation, had a stellar run on the domestic bourses on Thursday, with the stock price hitting a record high in intraday trade. The HDFC Bank share price jumped by as much as 2.4% to touch a new all-time high of ₹2,027.40 on the BSE, amid broad-based buying across Bank Nifty index as sentiment was lifted by easing inflation concerns and improving liquidity conditions.

HDFC Bank's share price ended the day’s trade at ₹2,023 on the BSE, up 2.16%, with market capitalisation at ₹15.51 lakh crore. As many as 3.46 lakh shares changed hands over the counter compared to the two-week average volume of 5.37 lakh stocks.

The shares of HDFC Bank have maintained an uptrend for three sessions, which coincide with the opening of the initial public offering of HDB Financial Services, the non-banking financial company arm of the lender. The banking heavyweight has risen nearly 4% in three days, while it added over 13% year-to-date. The counter has surged 4% in a month and 18.6% in the past one year.

The rally in HDFC Bank's shares was in sync with the broader market, with the BSE Sensex and Nifty surging over 1%.

HDFC Bank, which holds a majority stake of around 94.36% in HDB Financial Services, will reduce its stake worth around ₹10,000 crore to around 74.19% visits offer for sale in the IPO. This stake sale is being seen as a value unlocking event for HDFC Bank.

The successful launch and good subscription of the HDB Financial IPO, especially given the positive market view on its valuation, has created positive sentiment around HDFC Bank, believe some market watchers. Analysts believe that it signals an improvement in both fee-based and non-fee-based income streams for HDFC Bank going forward.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)