In a GREED & Fear report, Jefferies' Chris Wood noted that he had shifted his allocation to HSBC Bank, removing HDFC Bank from both his Asia ex-Japan and global long-only equity portfolios.

HDFC Bank Share Hits 52-Week Low - Why Jefferies Is Bullish On This Banking Stock

HDFC Share Price: The share price of HDFC Bank on Monday, March 30, declined as much as 2% to hit an 52-week low of Rs 738.35 apiece after Jefferies’ Christopher Wood removed the private bank from two key portfolios, citing the latest 'Greed and Fear' report.

This comes after the banking stock had already declined over 3% in its previous trading session.

In a GREED & Fear report, Wood noted that he had shifted his allocation to HSBC Bank, removing HDFC Bank from both his Asia ex-Japan and global long-only equity portfolios.

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“An investment in HSBC will also be introduced with a 4% weighting by removing the investment in HDFC Bank,” he noted.

The Mumbai-headquartered bank has been under pressure ever since its part-time Chairman Atanu Chakraborty resigned citing certain “happenings and practices” at the bank that were not aligned with his personal values and ethics,

On the other hand, Jefferies stays bullish on on HDFC Bank, calling valuations “attractive” after a sharp 25% year-to-date (YTD) decline in the banking stock, while noting that the lender remains one of its top sector picks.

The brokerage maintained a “Buy” rating on HDFC Bank with a target price of Rs 1,240, eyeing an upside of 64% from the previous close of Rs 756.25.

As of 1:07 PM, the shares of HDFC Bank was trading 1.59% lower at Rs 744.25 apiece.

Meanwhile, the sectoral bourse Nifty Bank fell as much as 2.16% last week. For Nifty Bank, dropping below 51,300 may pull the Index down to 50,700, while closing above 54,100 is needed to reach 55,600, according to a brokerage house.