What caused HDFC Bank's market value to drop by Rs 47,482 crore this week?
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Synopsis
This week, HDFC Bank's market valuation plummeted by Rs 47,482.49 crore, marking it as one of the largest losers among India's top 10 firms. The decline reflects broader market trends, impacting several major companies and raising questions about future recovery.
Key Takeaways
- HDFC Bank lost Rs 47,482 crore this week.
- The overall market sentiment turned bearish.
- Eight out of the top ten companies on BSE faced significant losses.
- Market experts see potential for recovery at key support levels.
- Both TCS and HUL showed gains amidst the downturn.
New Delhi, Aug 31 (NationPress) The market valuation of HDFC Bank experienced a significant decline of Rs 47,482.49 crore this week, bringing its total to Rs 14,60,863.90 crore. This drop makes it one of the largest losers among India’s top 10 most valued companies.
Reliance Industries also encountered a considerable downturn as market sentiment turned pessimistic.
In total, eight out of the top ten companies listed on the BSE saw a collective loss of Rs 2,24,630.45 crore in market capitalisation during the week, coinciding with a decline of 1,497.2 points, or 1.84 percent, in the benchmark Sensex.
Besides HDFC Bank, other notable losers included ICICI Bank, which fell by Rs 27,135.23 crore to Rs 9,98,290.96 crore, and Bharti Airtel, which declined by Rs 24,946.71 crore to Rs 10,77,213.23 crore.
The market value of LIC decreased by Rs 23,655.49 crore, while SBI saw a reduction of Rs 12,692.1 crore.
Bajaj Finance and Infosys also faced losses, amounting to Rs 10,471.08 crore and Rs 7,540.18 crore respectively.
In contrast, Tata Consultancy Services (TCS) and Hindustan Unilever bucked the trend, with TCS gaining Rs 11,125.62 crore in market valuation and HUL increasing by Rs 7,318.98 crore.
Market analysts indicated that despite the overall cautious tone, key support levels remain intact, and a recovery cannot be dismissed.
Amruta Shinde, a Technical and Derivative Analyst at Choice Broking, noted that the Nifty index temporarily reclaimed the 24,500 mark during the week, suggesting resilience amidst the volatility.
“The index is near critical support levels between 24,337–24,267. A bounce from this range could push Nifty back toward 24,700–24,850, where robust resistance exists,” she explained.
Momentum indicators have displayed some weakness, with the RSI dropping to 39.14. However, analysts believe this situation could create opportunities for recovery if buying interest resurfaces. On the derivatives front, support at 24,400 is anticipated to mitigate declines in the short term.
The Bank Nifty also faced pressure, concluding the week at 53,655 after encountering resistance around 54,000.
Analysts highlighted that the index appears oversold on daily charts, with the RSI at 27.45, suggesting a potential technical rebound if the 200-day EMA near 53,570 holds as support.
“Should there be any movement above 54,000, it could pave the way for targets of 54,450 and 54,900,” Shinde remarked.
Point of View
It's crucial to emphasize that while HDFC Bank's significant loss in market valuation is alarming, it reflects broader market dynamics that investors must navigate. The resilience of certain indices indicates potential recovery, urging stakeholders to remain informed and strategic in their investment decisions.
NationPress
31/08/2025
Frequently Asked Questions
What caused HDFC Bank's market value to decline?
HDFC Bank's market value fell primarily due to a bearish market sentiment affecting several major companies, leading to a collective loss among top firms.
How much did the Sensex drop this week?
The benchmark Sensex dropped by 1,497.2 points, or 1.84 percent, contributing to the negative market environment.
Which companies were the biggest losers alongside HDFC Bank?
Alongside HDFC Bank, ICICI Bank and Bharti Airtel were significant losers, with losses of Rs 27,135.23 crore and Rs 24,946.71 crore respectively.
Is there a possibility of recovery in the market?
Market experts suggest that key support levels are holding firm, indicating a potential for recovery if buying interest returns.
What is the current RSI for Bank Nifty?
The RSI for Bank Nifty is currently at 27.45, indicating it may be oversold, suggesting a possible technical rebound.
