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HDFC Share Price Rises Near YTD Highs After Upbeat Financial Report

Written By: Michael Abadha
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HDFC Bank share price extended their gains to the sixth straight session on Thursday as positive financial report provided propulsion. HDFC was up by 3.06% and traded at Rs. 1527.60 at the time of writing as it continued its quest to return above its 200-MA level.  The share price is currently within touching distance of the year-to-date highs of Rs.1596 recorded in January, and the current momentum could see a push to that level.

The bank reported in a filing on Thursday that its gross advances grew 55.4% in the one-year period to 31st March 2024 from Rs 16.14 lakh crore to Rs. 25.08 lakh crore. The loans portfolio saw significant growth too, although the third quarter experienced a slowdown in lending. HDFC’s domestic retail loans grew by 3.7% in the Q3FY24, contributing to an annual growth of 108.9%.

India’s largest private bank also reported a spike in customer deposits, with retail deposits growing by 27.8% year-on-year. Deposits added up to Rs 23.8 lakh crore from the March 31st 2023 figure of Rs 18.83 lakh crore. Current Accounts Savings Account (CASA) deposits grew by 8.7% year-on-year to Rs 9.09 lakh crore, with the last quarter experiencing a growth of 8.8%. Loans to commercial and rural customers grew by 24.6% Year-on-Year and 4.2% in the third quarter.

Of concern, however was a decline in foreign institutional investment in the bank. FII stake reduced to 47.83 in the third from the second quarter’s 52.39%. That said, mutual funds raised their stake during the same period from 19.48% to 22.35%. The impressive results announced on Thursday could trigger volatility in HDFC share price ahead of its Q4FY2024 earnings announcement on April 20, 2024.

Technical analysis

HDFC share price will maintain the upside if it stays above the 1498.90 pivot. That could give the buyers the momentum to break the resistance at 1533.45 and potentially test 1668 in extension. Conversely, a move below 1498.90 will likely favour the sellers to build momentum to break the support at 1471.50. If that happens, the next support will likely be established lower at 1447.40.