HDFC Bank Rises on HDB IPO; SBI Eyes ₹960 Target – Intraday and Long-Term Strategy Breakdown
Shares of HDFC Bank surged 1.2% to ₹1,954.80 at 10:20 AM in Friday’s session, after its non-banking finance arm, HDB Financial Services, announced the launch of its much-anticipated initial public offering (IPO). The ₹12,500-crore public issue — India’s largest by a non-bank lender — is set to open for subscription on Wednesday, June 25, sparking fresh momentum in the stock and renewed interest among intraday trading enthusiasts.
HDFC Bank confirmed in an exchange filing on Thursday that HDB Financial has filed its Red Herring Prospectus (RHP) with the Registrar of Companies. The IPO window will remain open until June 27, while anchor investors are scheduled to place their bids on June 24. The announcement has not only lifted HDFC Bank stock but is also shaping up as a critical development influencing near-term stock market strategy, with traders eyeing potential upside on the back of strong institutional demand.
HDB Financial Services IPO
The IPO price band for HDB Financial Services (HDBFS) is fixed at ₹700 to ₹740 per equity share (face value ₹10 each).
Investors must bid for a minimum of 20 equity shares, and in multiples of 20 thereafter.
Opens: Wednesday, June 25, 2025
Closes: Friday, June 27, 2025
Anchor Investor Bidding: Tuesday, June 24, 2025
Offer Structure for HDBF IPO:
Fresh Issue: Up to ₹2,500 crore
Offer for Sale (OFS): Up to ₹10,000 crore by HDFC Bank
HDFC Bank’s Board has approved the transfer of equity shares it holds in HDBFS for the OFS portion of the IPO.
HDFC Bank Upcoming Dividend
The Board of Directors recommended a dividend of ₹22.00 per equity share of the Bank of face value of ₹1/- each, for FY 2025, subject to shareholder approval.
Buy Rating for SBI from Jefferies
Alongside HDFC Surge Global brokerage firm Jefferies issued a “buy” recommendation on State Bank of India (SBI), assigning a target price of Rs 960 per share, implying a potential upside of 22 percent.
Jefferies projects a credit growth of 12 percent and deposit growth of 10 percent for the public sector lender, supported by adequate liquidity buffers. The bank is also expected to maintain a return on assets (RoA) of 1 percent despite facing near-term pressure on net interest margins (NIM) due to anticipated rate cuts.
In FY2025, SBI reported a decline in net profit, although net interest income (NII) registered a modest increase. Specifically, net profit dropped 10 percent compared to the same period last year, while NII rose by 2.7 percent to Rs 42,775 crore.
On the positive side, SBI’s asset quality showed sequential improvement. The gross non-performing assets (GNPA) ratio declined to 1.82 percent in the January–March quarter from 2.07 percent in the preceding quarter. The net NPA ratio also improved to 0.47 percent from 0.53 percent.
Geojit Financial Services also Upgrading SBI to a “buy” from “hold” with a revised target price of Rs 888 per share.
Among the 42 brokerages tracking SBI, 34 maintain a “buy” rating, 7 suggest “hold,” and only 1 recommends “sell.”
Stock Market Strategy - HDFC Bank
Intraday Trading Strategy
Range Monitoring: Trade within the current sideways range of ₹1,900–₹1,975.
Breakout Entry: Buy above ₹1,950 for potential upside targets of ₹2,025 and ₹2,050; sell below ₹1,900 for downside targets of ₹1,880 and ₹1,850.
Stop-Loss: Set a strict stop-loss at ₹1,900 for long positions to manage risk.
Momentum Indicators: Watch RSI (neutral at 51.27) and Stochastic RSI for negative crossover signals indicating short-term weakness.
Long-Term Investing Strategy
Invest before the record date (June 27, 2025) to secure the ₹22.00 per share dividend.
Support Level: Accumulate around ₹1,900, a key support level, for better entry points.
Breakout Target: Hold for a potential breakout above ₹1,975, targeting ₹2,025–₹2,050 in the medium term.
IPO Impact: Leverages positive sentiment from HDB Financial Services’ ₹12,500-crore IPO to boost HDFC Bank’s valuation.
Maintain a stop-loss at ₹1,880 to protect against unexpected corrections.
Focus on HDFC Bank’s strong fundamentals and institutional demand as a stable long-term investment.
Stock Market Strategy - SBI
Intraday Trading Strategy
Current Price Action: Trade around the current price of ₹796, up 1.59%, with focus on intraday momentum.
Resistance Levels: Target ₹810 and ₹825 on sustained buying; book profits if resistance is encountered.
Support Levels: Watch ₹785 as immediate support; a break below could lead to ₹775 or ₹760.
Stop-Loss: Set a stop-loss at ₹785 for long positions to limit downside risk.
Long-Term Investing Strategy
Buy Recommendation: Accumulate at current levels (₹796) or on dips near ₹775, aligning with Jefferies’ ₹960 and Geojit’s ₹888 target prices (22% and 11.5% upside, respectively).
Growth Drivers: Hold for projected 12% credit growth and 10?posit growth, supported by RBI’s monetary policies and tax cuts.
Asset Quality: Benefit from improving GNPA (1.82%) and net NPA (0.47%) ratios, indicating stronger fundamentals.
Set a stop-loss at ₹760 to protect against market corrections.
Leverage strong “buy” consensus (34/42 brokerages) for confidence in long-term upside.
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