The stock market today opened on a mixed note for banking stocks, with investors clearly picking sides. While HDFC Bank found itself under pressure after its Q3 business update, Union Bank share price surged to a fresh 52-week high, reflecting stronger near-term confidence in public sector lenders.
By midday, the mood in the banking space was split—private heavyweight HDFC Bank dragged, while Union Bank of India stood tall among gainers.
Market Performance: Banking Stocks Trade Mixed
Early trade on January 5 showed visible divergence within banking stocks.
- HDFC Bank share price slipped more than 2%
- Union Bank share price jumped over 4%, marking a new 52-week high
- Nifty Bank index hovered marginally higher at 60,246.55 around 12:30 pm
HDFC Bank dropped to Rs 981.05, making it one of the top losers on both Sensex and Nifty. On the other side, Union Bank of India climbed to Rs 162.99, firmly holding buying interest through the session.
Main News: Why HDFC Bank Shares Fell Today?
The fall in HDFC Bank shares came after the lender released its provisional Q3 FY26 business update. While growth stayed intact, the market reaction suggested expectations were already priced in.
Here’s what the update showed:
- Average advances under management rose 9% YoY to Rs 28.64 lakh crore
- Compared with Rs 26.28 lakh crore in Q3 FY25
- Period-end advances under management increased 9.8% YoY to Rs 29.46 lakh crore
- Gross advances jumped 11.9% YoY to Rs 25.43 lakh crore
On the deposits side:
- Average deposits grew 12.2% YoY to Rs 27.52 lakh crore
- CASA deposits increased 9.9% YoY to Rs 8.18 lakh crore
Despite these steady numbers, the HDFC Bank share price remained under pressure, indicating cautious sentiment in the stock market today.
Union Bank Share Price Rallies After Q3 Update
In contrast, Union Bank of India saw strong momentum after releasing its Q3 business update on January 2, after market hours. The data resonated well with investors when trading opened.
Key highlights from Union Bank’s update:
- Total gross advances rose 7.13% YoY to Rs 10.17 lakh crore
- Total deposits increased 3.36% YoY to Rs 12.23 lakh crore
- Domestic CASA deposits grew 5% YoY to Rs 4.15 lakh crore
Following this, the Union Bank share price surged more than 4%, touching Rs 162.99, its highest level in the last 52 weeks.
The move stood out clearly amid an otherwise mixed banking session.
Other Bank Stocks in Focus
Apart from HDFC Bank and Union Bank, several other lenders also saw action during the day:
Stocks under pressure:
- Federal Bank fell around 2%
- IDFC First Bank and Kotak Mahindra Bank traded marginally lower
Stocks in the green:
- Axis Bank
- ICICI Bank
- State Bank of India (SBI)
- AU Small Finance Bank — all gained over 1%
Meanwhile, Bank of Baroda, Yes Bank, Punjab National Bank (PNB), IndusInd Bank, and Canara Bank posted gains close to 1% each.
Company Details at a Glance
HDFC Bank
- Q3 average advances: Rs 28.64 lakh crore
- Period-end advances: Rs 29.46 lakh crore
- Average deposits: Rs 27.52 lakh crore
- CASA deposits: Rs 8.18 lakh crore
- Stock movement: Down over 2%
Union Bank of India
- Gross advances: Rs 10.17 lakh crore
- Deposits: Rs 12.23 lakh crore
- Domestic CASA: Rs 4.15 lakh crore
- Stock movement: Up over 4%, 52-week high
Summary: Stock Market Today Shows Clear Split in Banking Space
The stock market today highlighted a clear contrast within banking stocks. HDFC Bank faced selling pressure despite stable growth numbers, dragging its share price lower. Meanwhile, Union Bank share price rallied sharply, scaling a fresh 52-week high on the back of its Q3 business update.
With banking stocks continuing to react closely to quarterly data, investors are watching every number carefully—making sector updates a key driver of daily market moves.
Source: Moneycontrol
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