HDFC Bank Shares Fall Over 2% On US Lawsuit
The lawsuit filed in the US District Court, Southern District of New York by one Jwalant Natvarlal Soneji against HDFC Bank, MD and CEO Sashidhar Jagdishan and Srinivasan Vaidyanathan the bank’s CFO is related to the fall in HDFC Bank shares following a news report that had appeared on May 27, 2026
Mumbai: Private lender HDFC Bank's shares fell 2.3 per cent on Thursday’s session, hitting a fresh 52-week low of Rs 710 on the National Stock Exchange (NSE) from the previous close of Rs 727.20 amid a US class action lawsuit alleging that the bank violated foreign securities laws and caused losses to investors. The fall also pushed HDFC Bank’s market capitalisation below the Rs 11 trillion mark. So far in 2026, HDFC Bank shares are down about 28 per cent.
Heavy selling in the HDFC Bank stock and lack of progress in negotiations surrounding Strait of Hormuz weighed on investor sentiment. Falling for the second day, the 30-share BSE Sensex dropped 539.35 points, or 0.70 per cent, to settle at the day's low of 76,933.59 on the monthly derivatives-expiry day which kept price action choppy throughout the day and capped any meaningful recovery.
The 50-share NSE Nifty ended with a fall of 116.90 points or 0.48 per cent and closed the session at 24,090.85.
On the sectoral front, Nifty Pharma emerged as the top-performing sector, attracting defensive buying interest amid the weak market sentiment. On the downside, PSU Banks, Media, Metal, and FMCG remained the key laggards, witnessing broad-based selling pressure during the session.
The broader market showed relatively better resilience than the benchmark indices. The Nifty Midcap 100 and Nifty Smallcap 100 ended largely flat, indicating selective buying at lower levels despite weakness in large-cap stocks.
The lawsuit filed in the US District Court, Southern District of New York by one Jwalant Natvarlal Soneji against HDFC Bank, MD and CEO Sashidhar Jagdishan and Srinivasan Vaidyanathan the bank’s CFO is related to the fall in HDFC Bank shares following a news report that had appeared on May 27, 2026. The news report alleged that the lender had made payments worth ₹45 crore to Maharashtra State Road Development Corporation (MSRDC) as higher interest for their deposits and that this was disguised under marketing budgets and sponsorships for a road safety drive.
Meanwhile the spot rupee ended lower at 95.55 levels, as traders eyed forex inflows ahead of the August 31 deadline for FCNR (B) swap scheme.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said, “The underlying trend of Nifty is choppy with weak bias. Any failure to sustain above the crucial 24000 mark could trigger more weakness in the short term. The crucial overhead resistance is placed at 24380.”