HDFC Bank's stock has been under pressure since Thursday's early trading, following its largest intraday increase in almost three months. By 1 pm on the National Stock Exchange (NSE), the shares of the biggest private bank in India were down 1.62% at Rs 1,415.80. On the other hand, a day before, the stock increased 2.63 percent to close at Rs 1,454 each.
Pressure on HDFC Bank shares- A wider decline in the banking and financial industry coincided with the private lender's share price. Investors' Wednesday-starting profit booking has been a major factor in this decline.
Analysts said that as most equities have achieved their top prices and only substantial changes may significantly affect the course of events, profit booking is occurring on the local markets. As previously indicated, HDFC Bank shares had a big surge on Wednesday, driven by brokerage company Citi's favorable recommendation.
However, HDFC Bank's advances on Dalal Street appear to have been interrupted by the erratic mood amid profit booking.
A possible contributing factor to the increased pressure might be the latest revelation made by HDFC Life Insurance, a division of HDFC Bank. On Wednesday, HDFC Life Insurance informed the stock markets that it had received a tax demand totaling Rs 1.26 crore.
But profit booking, which was sparked by the general market mood, appears to be the main cause of the drop in HDFC Bank's shares.
