ICICI Up, HDFC Down After Q4; Analysts Positive on Both Banks
ICICI Up, HDFC Down After Q4; Analysts Positive on Both Banks
ICICI Bank gains while HDFC Bank slips after Q4 results, as analysts turn optimistic on both lenders and raise target prices.
Monday saw a mixed mood in private banking counters: ICICI Bank rose while HDFC Bank fell after both posted fourth-quarter earnings broadly in line with expectations, underscoring a divergence in near-term investor positioning.
ICICI Bank gained 0.7% to close at ₹1,356.2, while HDFC Bank slipped 0.6% to ₹795.45. The Nifty 50 finished little changed at 24,364.85, reflecting a cautious read on the market despite the earnings news.
Bloomberg data shows a strong buy sentiment: 96% of analysts covering ICICI Bank recommend the stock, while all analysts covering HDFC Bank rate it a Buy. Still, the near-term trajectory looks divergent as investors reprice growth expectations after the Q4 print. Bloomberg consensus puts an average upside of about 24% for ICICI Bank and about 33% for HDFC Bank, signaling room for both to rise from current levels.
On targets: ICICI Bank’s average target rose to ₹1,680.02, supported by upgrades from several foreign and domestic houses; HDFC Bank’s 12-month average target was trimmed to ₹1,056.30 from ₹1,100.72, even as HSBC, JP Morgan and Nomura raised their estimates while Citi lowered its target but kept a Buy rating.
Analysts say the numbers reinforce the view that the two lenders—though leaders in private banking—will move in tandem on the long arc of lending growth and asset quality improvement, even as earnings trajectories and investor appetite diverge in the shorter term.
Overall, the market remains constructive about the sector’s prospects, with analysts highlighting continued resilience in the private banking space and a potential re-rating as liquidity and loan growth pick up.
