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HDFC Bank Unseats TCS To Become Second Most Valuable Company In India

Shares of HDFC Bank have surged nearly 53% so far this year.

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HDFC Bank Unseats TCS To Become Second Most Valuable Company In India

HDFC Bank touched an intraday high of Rs 1,840, taking its total market value to Rs 4,74,925 crore.


HDFC Bank, which was recently granted the status of a 'too big to fail' bank, today achieved another milestone. The Mumbai-based lender today became the second most valuable bank in India pipping IT bellwether TCS.  HDFC Bank's shares touched an intraday high of Rs 1,840, taking its total market value to Rs 4,74,925 crore, while at the day's highest level of Rs 2,479, TCS' total market capitalisation was Rs 4,74,466 crore. Here are five key points that you must know about it:

1) Including today, HDFC Bank shares have gained for the sixth straight day. Global brokerage Nomura said "HDFC Bank is uniquely positioned to take advantage of the market share churn. It is ahead of competition in investing for the future (digital) and is very focused on reducing the turnaround time." The brokerage has a buy rating on HDFC Bank for a target price of Rs 2,100, implying a potential gain of 15 per cent from Monday's closing price.

2) Shares of HDFC Bank have surged nearly 53 per cent so far this year, while that of TCS rose by nearly 5 per cent. Rupee's appreciation against the dollar and US government's crackdown on work visas has made the revenue outlook of Indian IT companies gloomy. Further, the rise of automation has also reduced the labour component of certain IT related activities. IT sector has been one of the worst performing sector in India this year.

3) Reliance Industries Ltd is the country's most valued firm with a market cap of Rs 5,33,818.72 crore followed by HDFC Bank, TCS, ITC (Rs 3,35,993.75 crore) and HDFC Ltd (Rs 2,84,580.02 crore) in the top five list.

4)The Reserve Bank of India, on September 4, included HDFC Bank in the list of 'too big to fail' lenders, referred to as D-SIB or domestic systemically important banks. State Bank of India and ICICI Bank are the only other two banks which are also a part of this list. SIBs are subjected to higher levels of supervision so as to prevent disruption in financial services in the event of any failure.

5) As of 2.47 pm, HDFC Bank shares traded 0.55 per cent higher at Rs 1,833.40 while TCS shares traded 0.73 per cent higher at Rs 2,472.35 compared to Nifty, which was up 0.74 per cent.
(With Agency Inputs)
 


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