There is a continuous decline in the shares of HDFC Bank, India's largest private bank. After reporting the March quarter earnings, some brokerages have reduced their target prices on HDFC Bank shares. At this time, the stock is trading with a decline for the 9th consecutive trading session.

Today i.e. even on Tuesday, the shares of HDFC Bank are trading at Rs 1,364.15, down about 3 per cent on BSE. Earlier on Monday, the condition of the stock market was not good and the markets were closed on the red mark. On Monday, HDFC Bank stock closed down 4.7 per cent at Rs 1,395.35. Shares of HDFC Bank have fallen by more than 9 per cent in the last five trading sessions.

After the continuous fall in HDFC Bank shares, now most brokerages have maintained 'buy' rating but have reduced the target price. Nomura has retained the 'buy' rating but it has also reduced the target price to Rs 1,705 from Rs 1,955. Yes Securities has also maintained a 'buy' rating on the bank, but has lowered the target price to Rs 1,668 from Rs 1,900. That is, overall the brokerage firm has definitely kept a 'buy' rating, but has reduced the target price.

On the other hand, Edelweiss has also reduced the target price keeping the 'buy' intact. Earlier its target price was Rs 2,000, which has now come down to Rs 1,860. At the same time, Emkay Global also reduced its target price from Rs 2,050 to Rs 1,950. CLSA maintains a 'buy' rating on HDFC Bank, but has also advised ICICI Bank, Axis Bank and SBI.

According to the brokerage firm, the effect of uncertainty regarding the merger may be seen on HDFC Bank's stock. The company's Q4 result has also been poor. Ravi Singh, Vice President and Head of Research - SHARE India, has told that HDFC Bank's growth in Q4 has been visible in every segment. He says that the merger with HDFC Ltd is going to benefit the bank in the long run.

Steady Decline In HDFC Bank Shares, Brokerages Reduce Their Target Prices