HDFC Bank share price gained over 2% on Friday, led by strong buying momentum across the banking stocks. HCFC Bank shares gained as much as 2.33% to ₹761.95 apiece on the BSE.
HDFC Bank shares were one of the top gainers on the Bank Nifty index. All the constituents of the Bank Nifty index were trading in the green, lifting the index over 1.5% to above 56,000 level during the session.
Other baking stocks that led the rally include Yes Bank, Bank of Baroda, Federal Bank, IDFC First Bank, Punjab National Bank (PNB) and Axis Bank, that rallied over 1% each.
The latest rally in the banking stocks came after the Reserve Bank of India’s (RBI) latest measures to boost foreign currency inflows, which are expected to strengthen India’s forex reserves, improve banking system liquidity and support the rupee.
RBI Measures
The RBI has introduced special facilities for Foreign Currency Non‑Resident account [FCNR (B)] deposits and external commercial borrowings (ECBs), enabling banks to access overseas funds at significantly lower costs.
The initiatives are aimed at attracting foreign capital, improving resource mobilisation and enhancing overall liquidity conditions within the banking system.
Motilal Oswal Financial Services Ltd (MOFSL) estimates total inflows at $40-50 billion in FY27 due to these measures.
According to the brokerage firm, banks stand to benefit from a 200-250 basis point reduction in borrowing costs through the ECB route under the RBI’s concessional swap framework. Lower funding costs are expected to support credit growth while helping banks maintain funding efficiency.
Overall, we estimate $40-50 billion of FX inflows in FY27. We note that while these measures will aid business growth for banking system, the improvement in profitability ratios will depend on the sourcing quality (mix of leveraged deposits vs pure inflows), pricing discipline and the agility shown by banks in deploying these funds into loans,” Motilal Oswal said.
HDFC Bank shares are among the top picks in the banking sector by Motilal Oswal.
Technical View
HDFC Bank share price has crossed 20-dema after a long time and a small range breakout is visible on the daily chart, noted Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.
“HDFC Bank share price has relatively underperformed as compared to its peers ICICI Bank and Axis Bank, but considering this breakout, prices are likely to see upside in the coming week with levels around ₹780 – 800 likely to be tested,” said Bhosale.
On flip side, he added that support for HDFC Bank shares is seen at ₹730 level.
HDFC Bank share price has risen 1% in one month and has fallen 9% in three months. The private banking stock has declined 25% in six months and had dropped 22% in one year.
At 1:25 PM, HDFC Bank share price was trading 2.04% higher at ₹759.80 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
