HDFC Bank: Steepest single-day fall, gains wiped off; caution warranted

On Wednesday, the private lender's stock saw its steepest single-day fall of 9.9 per cent in nearly 12 years; it is down 33 per cent since all-time high

When banking stocks, irrespective of their strength or size are falling like nine-pins, one cannot expect HDFC Bank to remain an exception. With a fall of 9.9 per cent, which is also its steepest since July 2008, gains accumulated by the HDFC Bank stock over two years have been wiped off.

What’s more, despite being reckoned as the most recommended ‘buy’ among banking names, it hasn’t been able to prevent the fast melting down from its all-time high, given the 33 per cent fall during this period.

The question is whether investors should consider HDFC Bank’s latest closing price of