HDFC Bank shares just 0.5% shy of its 52-week high price; Macquarie picks it as its top banking pick on easing liquidity

HDFC Bank shares will remain in focus in Thursday's session as global brokerage Macquarie has maintained outperform call on the stock with a target of Rs 1,900, an upside of nearly 7 per cent from the last close. The stock after opening with gains last was seen under pressure at Rs 1,774.4 per share.

In the previous session, the stock ended higher by 0.6 per cent or Rs 10.4 at Rs 1,778.85 per share on the BSE.

The brokerage said that in July-September quarter, the company's loan growth may dip below 10 per cent year-on-year ( YoY). The private banking major is under pressure to reduce the loan-to-deposit ratio (LDR) and focus on margins.

Nonetheless it remains its top banking pick on easing liquidity conditions.  The brokerage expects HDFC Bank to report a 16 per cent EPS CAGR over the next three years.

Given the elevated valuation concerns across Indian markets after the sharp rally, analysts are selective about quality largecap stocks and are of the view that the Bank Nifty offers valuation comfort.