HDFC Bank’s Quarterly Update
HDFC Bank, the largest constituent of the Nifty 50 index, has released its quarterly performance update, highlighting a notable divergence in deposit and loan growth. Specifically, the bank reported a 15.8% year-on-year increase in deposits, significantly outpacing the 3% year-on-year growth in loans.
A Cloud of Uncertainty
Experts believe this gap could negatively impact the bank’s net interest margin, possibly reducing its net profit.
Investors Take a Step Back
This news caused a stir in the market, leading to a 2.2% drop in the share price yesterday (Jan 06).
Technical Observations
- The stock price has fallen below its trendline support and is currently trending downward.
- A minor support is anticipated around ₹1,700.
- If the stock price drops below this level, the next support is projected to be close to ₹1,600.
