HDFC Bank Shares Fall for Second Straight Session After ADR Crash; Jefferies Predict 24% Upside

Shares of HDFC Bank dropped 1.51% leading to a three-month low with stock trading at Rs 962.85 apiece. On Monday, the stock closed at Rs 963.55 on the National Stock Exchange and on the BSE, while it opened lower on Tuesday at Rs 957.35. The drop in the HDFC Bank shares appears to be the 6.33% crash in its American Depositary Receipts (ADR) overnight. The shae is currently trading at Rs.964.50. However, the fall in HDFC Bank shares also comes after the lender reported its Q3 business update. HDFC Bank registered a 12% increase in loan growth at Rs 28.44 lakh crore in the December quarter.

Total advances were Rs 25.42 lakh crore at the end of December 31, 2024, HDFC Bank said in a regulatory filing. The lender reported a 12 per cent rise in average deposits to Rs 27.52 lakh crore, as against Rs 24.52 lakh crore at the end of the third quarter of the previous financial year.The bank's average advances under management (advances grossing up for inter-bank participation certificates, bills rediscounted and securitisation/assignment) were Rs 28.63 lakh crore for the quarter under review, registering a growth of about 9% over Rs 26.27 lakh crore in the year-ago period. However, international brokerage house Jefferies has maintained that HDFC Bank continues to be its top pick in the banking sector and maintained its ‘Buy’ rating on HDFC Bank. The brokerage house has a target price of Rs 1,240, implying over 24% upside potential from the current market price.

Meanwhile, Benchmark indices Sensex and Nifty declined in early trade on Tuesday (January 6, 2026), dragged by heavy selling in blue-chips Reliance Industries, HDFC Bank, and worries over fresh warning from the U.S. to further raise tariffs against India.The 30-share BSE Sensex declined 431.95 points to 85,007.67 during early trade. The 50-share NSE Nifty tanked 105.6 points to 26,144.70.From the 30-Sensex firms, Trent tumbled over 7% even as the Tata group retail firm reported a 17% growth in standalone revenue to ₹5,220 crore in the December quarter.Reliance Industries, Tata Motors Passenger Vehicles, Eternal, HDFC Bank, and Adani Ports were also among the laggards. However, ICICI Bank, Bajaj Finserv, Asian Paints, and Tata Steel were among the gainers.Foreign institutional investors offloaded equities worth ₹36.25 crore on Monday after a day's breather, according to exchange data. Domestic institutional investors, however, bought stocks worth ₹1,764.07 crore."While broader sentiment remains guarded amid recent bouts of volatility driven by geopolitical developments and tariff-related concerns, underlying support continues to come from stable domestic macro fundamentals and steady institutional participation," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.