HDFC Bank share price soared to a new lifetime high on Thursday, June 26, driven by strong investor sentiment in the Indian stock market and the promising response to the initial public offering (IPO) of its subsidiary, HDB Financial Services. The rally in the banking sector, fueled by expectations of robust performance in FY 2025–26, also supported the momentum.
On the Bombay Stock Exchange (BSE), HDFC Bank share price rose nearly 1% to touch ₹1,997.90, marking its third consecutive day of gains.
HDB Financial IPO: A Key Trigger
The IPO of HDB Financial, a non-banking financial company (NBFC) owned by HDFC Bank, entered its second day of bidding on June 26 and received 45% overall subscription by 10:35 AM. The non-institutional investors’ portion was almost fully booked at 95%.
HDFC Bank is offloading shares worth ₹10,000 crore through an Offer for Sale (OFS), potentially earning a massive 1,495% return on its original investment. According to stock market expert Avinash Goranshkar, this OFS is being perceived very positively by the market.
“The valuation of the HDB Financial IPO is seen as fair and lucrative. The inflow of ₹10,000 crore is likely to reflect in HDFC Bank’s April–June quarter results. While this may be a one-time gain, it strengthens the bank’s financials and boosts sentiment,” said Goranshkar.
He further added that this marks long-awaited “value unlocking” for HDB, which investors had been anticipating since last year. The IPO finally materializing is seen as a major positive for HDFC Bank’s overall valuation and investor appeal.
Why It Matters for HDFC Bank
Even though ₹10,000 crore may not be a huge sum for a bank of HDFC’s scale, Goranshkar emphasized that the real gain lies in the shift in narrative. With HDB Financial now partially listed, HDFC Bank can reflect its valuation uplift on its own books, enhancing its market capitalization.
In addition, the Reserve Bank of India’s recent interest rate cuts and a favorable regulatory stance are turning the outlook more optimistic for NBFCs in FY26—adding another layer of bullishness around the HDFC Bank share price.
Banking Sector Outlook Remains Strong
Beyond the IPO, HDFC Bank share price is also benefiting from a broader sector-wide optimism. The banking industry is expected to thrive in FY 2025–26, with rising infrastructure investments from both government and private players spurring demand for credit.
According to a recent report by SBI Securities, the Indian banking system is currently in a strong position, supported by sufficient liquidity, lower NPAs, and potential relaxation in LCR norms. Banks with solid deposit bases and faster-growing balance sheets are projected to perform well in a dynamic interest rate environment.
Is It Time to Buy HDFC Bank Stock?
Analysts have noted that HDFC Bank share price is showing relative strength compared to private sector peers like ICICI Bank and Kotak Bank, signaling a shift in institutional and retail fund flows toward HDFC Bank.
On the technical side, Kunal Kamble, Senior Technical Analyst at Bonanza, highlighted that the HDFC Bank share price is nearing a crucial resistance zone at ₹2,000—a level where selling pressure had emerged in the past. A sustained close above this level could confirm a breakout, paving the way for targets around ₹2,050–₹2,100.
“Currently, the stock is trading above all key exponential moving averages (EMAs), showing a bullish trend. RSI remains in the higher band, and directional indicators DI+ and DI− support the ongoing uptrend. The ADX line also confirms the strength behind the move,” Kamble noted.
However, a close below ₹1,970 could invalidate the bullish setup, signaling a potential short-term pullback.
In Summary: The rise in HDFC Bank share price is being driven by a combination of factors—the strong response to the HDB Financial IPO, positive FY26 outlook for the banking and NBFC sectors, and solid technical momentum. Investors and analysts alike are watching for a decisive move above ₹2,000 to confirm a long-term breakout.
