HDFC Bank at a 52-Week Low: What lies ahead?

HDFC Bank

shares fell another 2% today, hitting a fresh 52-week low and extending the decline to more than 30% from the October 2025 high of ₹1,020.50. The bank's market capitalisation has now slipped below ₹11 lakh crore. Why Is the Stock Under Pressure? The latest pressure came after a US investor filed a securities-fraud class-action lawsuit against HDFC Bank and two senior executives, alleging false and misleading statements. HDFC Bank has rejected the allegations as without merit and said it intends to defend the case vigorously. This adds to a series of concerns that have weighed on the stock, including the resignation of former part-time chairman Atanu Chakraborty earlier this year and subsequent concerns around the bank. The stock had briefly recovered after a strong Q1 business update, but those gains were erased following the actual quarterly results. What Are Brokerages Saying? Despite the weakness, some analysts remain positive on the valuation. Goldman Sachs: Buy | Target ₹861 Nomura: Buy Motilal Oswal: Buy Goldman highlighted the potential for core PPOP improvement driven by margins and operating leverage, despite expecting further earnings-estimate revisions. What Does the Chart Say? The technical picture remains weak. HDFC Bank has broken below the important ₹725–720 support zone and is trading below key moving averages. Next support: ₹685–680 Key resistance: ₹765–770 A sustained move above ₹765–770 would be important for improving the broader technical setup. My View HDFC Bank is now a classic fundamentals-versus-sentiment story. At around 14x P/E, the valuation has become considerably more attractive after the prolonged correction, and major brokerages continue to see upside. But the stock is still dealing with multiple overhangs, so a cheap valuation alone may not be enough to trigger an immediate reversal.