HDFC Bank, India’s largest private sector lender, scaled a new record high of ₹1,997.90 on the BSE during Thursday’s trade, riding high on bullish market sentiment and investor enthusiasm surrounding the HDB Financial Services IPO. The stock gained nearly 1% intraday, marking its third consecutive session of gains and its sixth rise in the last seven sessions.
HDFC Bank Powers Market Rally; Tops Nifty 50 Contributors
On Thursday, HDFC Bank stood out as the top contributor to the Nifty 50’s 300-point rally, single-handedly adding 55 points to the index’s upward move. The banking giant’s performance is a key indicator of investor confidence in the broader financial services sector, which is being buoyed by strong earnings outlooks and renewed buying interest from institutional players.
HDB Financial IPO Fuels Sentiment
Adding fuel to the rally is the robust response to the HDB Financial Services IPO, which opened for subscription on June 25. By the morning of June 26, the offer had already garnered 45% overall subscription, with the non-institutional investor (NII) segment nearly fully subscribed at 95%.
HDFC Bank is offloading a stake worth ₹10,000 crore in HDB Financial through an Offer for Sale (OFS), a move that’s expected to generate a massive 1,495% return on its original investment. This not only strengthens HDFC Bank’s balance sheet but also showcases its ability to create long-term shareholder value through strategic investments.
Strong 2025 Performance for HDFC Bank Stock
So far in 2025, HDFC Bank shares have surged 14%, already making this the best year for the stock since 2019, when it had posted a 20% annual gain. Analysts attribute the bullish trend to expectations of robust banking sector growth in FY 2025–26, led by improving credit demand, stable asset quality, and a favorable interest rate environment.
What Investors Should Watch Next
With HDB Financial’s IPO progressing steadily and market sentiment favoring financials, investors will closely watch the final subscription data and listing performance of the NBFC arm. Additionally, continued strength in sectoral earnings could keep HDFC Bank stock on a strong upward trajectory.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a qualified financial advisor before making any investment decisions. Stock market investments are subject to market risks.