As the stock market continues to struggle after breaking its five-day rally, the share prices of HDFC Bank are still under distress, logging a decline for the second straight day. On Thursday, HDFC Bank shares tumbled nearly four percent during trading hours.
Opening at a slight decline from the previous close, HDFC share price fell by 3.55 percent on Thursday, recorded at ₹1,485 before the markets close for the day. This is the second straight day that HDFC Bank shares have fallen.
Meanwhile, the US-listed shares of the private lender fell 9.1 percent on January 18, falling to $55.5 on the New York Stock Exchange. HDFC Bank share prices, in totality, have fallen nearly 11 percent over the last two market sessions, right after the release of its quarterly results.
On January 16, the day its quarterly results were released, HDFC shares were recorded at ₹1,673 apiece, but the stock tumbled 8.44 percent the very next day, dropping to ₹1,542 during the closing bell of January 17.
Now, the drop in the HDFC Bank shares have sent a ripple effect in the stock of other private lenders in the country, subsequently impacting the Nifty Bank index and leading to a steep decline in the stock market on Wednesday and Thursday.
This comes after HDFC reported stagnant profit margins in its quarterly reports for December 2023, with the net interest margins (NIM) falling flat at 3.6 percent QoQ. Further, the net interest income rose by 4 percent and the net profit was up by 2.5 percent.
Stock market tumbles after Nifty Bank downfall
A day after the HDFC Bank Q3 reports were released, a sharp decline in the share price of the private lender led to a major downfall of Nifty Bank index, which was down by 2060 points on Wednesday, January 17.
Nifty Bank closed at 46,064 on Wednesday, and opened nearly 500 points lower on Thursday. Approaching the closing bell, Nifty Bank index was recorded at 45,743.60, down 320 points from its previous close.
The stock market also showed a significant decline for the second straight day after the benchmark Sensex was down by 757.36 points, settling at 70,751.77, while the Nifty faced a decline of 279.80 points, reaching 21,292.15.