HDFC Bank hits Rs 8 lakh crore market cap for first time, shares at record high
HDFC Bank's market capitalisation has crossed the Rs 8-lakh-crore mark for the first time, the third firm to reach the milestone after Reliance Industries and TCS.
November 25, 2020 / 11:49 AM IST
A day after gaining 3 percent, HDFC Bank shares looked set to extend the gains into the second session as the stock rose about 2 percent in the morning trade to hit a record high of Rs 1,464 on BSE on November 25.
The zooming share price saw the private lender's market-capitalisation cross the Rs 8-lakh-crore-mark for the first time, making it the country's third-largest company in terms of m-cap after Reliance Industries and TCS.
Global brokerage firm CLSA has maintained a "buy" call on the stock and raised the target from Rs 1,525 to Rs 1,700.
CLSA said the macro-environment had improved after the lockdown and a better use of data analytics was leading to lower retail stress against PAT cycles.
In the medium-term, OPEX efficiency had room for improvement and the private bank remained among its top picks, the brokerage said.
Besides, the recommendations of the Reserve Bank of India's internal working group, announced days ago, are largely related to ownership guidelines and corporate structure of Indian private sector banks. And if these recommendations get implemented, then experts believe the market share of private banks could increase significantly in the coming years.
Read more: Top brokerages hail RBI panel's recommendations as pragmatic, positive
Shares of HDFC Bank were trading 0.96 percent higher at Rs 1,452.40 on BSE at 1020 hours.
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