HDFC Bank's market capitalization surpassed Rs 14 lakh crore for the first time on Thursday, as the stock of India's largest private lender set a new high of Rs 1,836.05 on the BSE.

On Thursday, the stock reached a record high of Rs 1836.10, surrounding significant fall in the overall market. Significantly, the bank's market capitalization reached at Rs 14.01 lakh crore today.  

In the afternoon session, HDFC Bank's market capitalization was Rs 13.80 lakh crore on the BSE. On the BSE, total 1.74 lakh shares of the firm changed hands, resulting in a turnover of Rs 32.11 crore. HDFC Bank stock has a one-year beta of one. This indicates that the stock has average volatility.

In the previous three sessions, the stock touched record highs of Rs 1817.50 on November 27, Rs 1804.10 on November 26, and Rs 1801.90 on November 25.

This week's jump in banking stocks was spurred by a projected increase in the heavyweight lender's MSCI index weightage, which is expected to draw $1.9 billion in inflows. The MSCI November 2024 index review went into effect on Monday.The banking stock is neither oversold nor overbought, with HDFC Bank's relative strength index (RSI) reading 65.8.

In 2024, the stock has increased by only 5.89 percent. The private sector lender might return 17.73% each year.

HDFC Bank's main business is valued at 2.5 times its adjusted book value for September 2026E. The brokerage has set a target price of Rs 2026 for HDFC Bank based on a subsidiary value per share of Rs 215.50 and a 15% holding company discount. 

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

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, is optimistic on the stock. "HDFC Bank shares has broken out of a six-month consolidation to the upside. Potential gain is expected with objectives ranging from Rs 1980 to Rs 2000," Gedia stated that there is strong support between Rs 1720 and Rs 1700.