HDFC Bank share price rose over 3 per cent in early trade on Tuesday after the proposal for the succession of India’s biggest private sector lender’s new CEO and MD has been sent to the Reserve Bank of India (RBI) for final approval. Leadership stability is crucial for any large bank, and this matter reaching the RBI has further strengthened investor confidence in management.

At around 10:13 am, HDFC Bank shares were trading at Rs 726.10, up 2.52 per cent or Rs 17.85 on NSE. The blue-chip stock started the session with a huge gap-up at Rs 722.40 as compare to the last closing of Rs 708.25. Later, the scrip rose to hit an early high at 730.75, up 3.17 per cent from the last closing. Meanwhile, its 52-week high and low values stood at Rs 1,020.50 and Rs 681.90, respectively. 

As a heavyweight in both the Nifty and Bank Nifty, HDFC Bank's 3 per cent jump not only delighted investors but also boosted overall market sentiment. Meanwhile, International brokerage firm ‘Nomura’ has maintained 'Buy' call for the stock . 

Stock Market Traded Higher In Early Hour

In the opening hour, Sensex traded 440 points (0.59 per cent) higher at 75,222, and the Nifty 50 traded 120 points (0.51 per cent) higher at 23,518. However, the key domestic indices erased all their early gains amid broad-based selling as investors’ sentiment remained cautious ahead of the US Fed meeting and elevated crude prices  

Nomura sees a strong 34% upside

Global brokerage house Nomura maintained a bullish view–Buy Call– on HDFC Bank stock with a target price at Rs 950 per share, up 34 per cent from the last closing of Rs 708.25. 

  • HDFC Bank Target Price: Rs 950
  • Uptick Potential- 34 per cent

What Did Brokerage Say? 

Nomura said internal appointments could provide short-term relief through continuity and easy leadership changes; however, credible external appointments could prove more important in the medium term.

The global brokerage firm maintained its 'buy' rating on the stock, saying an internal appointment or a credible external candidate could help resolve the leadership uncertainty.

Disclaimer: This story is for informational purposes only. It should not be considered as investment advice. Please take advice from a certified advisor before investing.