July 22, 2019 / 5:35 AM / 5 months ago

BUZZ-India's HDFC Bank falls on hit to asset quality, loan growth

(Adds technicals)

** Shares of HDFC Bank Ltd, India’s biggest lender by market capitalisation, fall as much as 3.1% to 2,301 rupees, their lowest since May 16

** Bank on Saturday reported a 21% rise in June-qtr profit, but said gross NPA, a measure of asset quality, rose to 1.4% vs 1.36% previous qtr

** Provisions jumped 60.4% to 26.14 bln rupees ($378.81 mln), due to stress in bank’s agri portfolio

** Loan growth slowed to 17.1% at June qtr-end, vs 24.5% at March-qtr end, as advances to vehicle loan segment moderated

** “Even the bellwether isn’t immune to the economic slowdown” - Macquarie Research

** Stock’s wave pattern suggests that it has completed a five-wave uptrend and is in the initial wave of a three-wave correction

** In the near term, shares have support at 2,273.31 rupees. However, this correction is expected to continue for a couple of months and the stock is expected to test a support at 1,901.54 rupees, the 38.2% Fibonacci retracement level of the entire uptrend

** Stock marks sharpest intraday drop since end-May; top drag in the NSE index, which is down 0.74% as of 0427 GMT

** Around 1 mln shares change hands in early trade, vs 30-day avg of 2.6 mln shares

** 41 of the 46 analysts covering the stock have “buy” or “strong buy” ratings, 4 have “hold” and 1 “sell”; median PT 2,700 rupees - Refinitiv data

** Stock up 12% this year up to last close ($1 = 69.0050 Indian rupees)

Reporting by Chris Thomas, Gaurav Dogra in Bengaluru

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below