HDFC Bank share price crash: Several mutual fund schemes that are heavily invested in HDFC Bank are likely to be impacted following the fall in the stock price by more than 8 per cent in morning trade on March 19, after part-time chairman Atanu Chakraborty resigned.
Chakraborty resigned from India’s largest private lender, citing differences in “personal values and ethics.” The sudden departure prompted a strong reaction in HDFC Bank shares. The stock was trading at Rs 810 on the National Stock Exchange by noon, down almost 4 per cent from its previous close, recovering from its morning dip.
Actively managed mutual fund schemes could also be impacted due to their significant allocation to HDFC Bank. According to ACE MF data, funds like Mirae Asset ELSS Tax Saver Fund (9.71%), Mirae Asset Large Cap Fund (9.54%), and Quant Business Cycle Fund (9.50%) have among the highest stock allocations, with many others holding 9-9.4 per cent exposure.
Although a high weightage of HDFC Bank is justified from the perspective of bank-focused funds or ETFs, there might be volatility from diversified actively managed funds as well. It has to be noted that these funds are not restricted to any particular sector.
Top 15 actively managed mutual fund schemes with highest exposure to HDFC Bank
HDFC Bank’s share price fell 8.8 per cent to hit an intraday low of Rs 770, but later recovered marginally to trade 5.11 per cent lower at Rs 800 apiece.
The stock has delivered weaker returns than the benchmark Nifty 50 in the short term, reflecting heightened selling pressure.
Over the past week, the stock declined 3.55 per cent, compared with a 1.55 per cent fall in the benchmark index.
The underperformance widened over the one-month period, with the stock slipping 12.28 per cent, while the Nifty 50 dropped 8.57 per cent.
On a year-to-date basis, the stock is down 18.96 per cent, significantly steeper than the 10.99 per cent decline seen in the index.
Looking at annual performance, the divergence remains visible. Over the last year, the stock has fallen 7.90 per cent, even as the Nifty 50 posted a modest gain of 1.59 per cent. This indicates sustained relative weakness, with the stock failing to keep pace with broader market recovery phases during the period.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
