HDFC twins' stocks tank 20% each in 9 trading sessions: What analysts say

Total mcap erosion pegged at Rs 2.72 trillion; HDFC Bank falls for ninth straight day, down 3.73% to Rs 1,343.3. HDFC sheds 5.5% to Rs 2,138.7

The sharp drop in shares of HDFC Bank and parent Housing Development Finance Corp (HDFC) has stunned the Street. Since their merger announcement on April 4, both the stocks have tanked close to 20 per cent each and have seen combined market cap erosion of Rs 2.72 trillion. On Tuesday, HDFC Bank fell for a ninth straight day, declining 3.73 per cent to Rs 1,343.3. Meanwhile, HDFC fell 5.5 per cent to end at Rs 2,138.7.

Analysts say the sharp fall is on account of sharp pullback by foreign portfolio investors (FPIs) due to concerns around the merger. Also, weak