HDFC Bank: Shares fell on one side and smart people bought HDFC Bank shares worth Rs 17,250 crore, something big is about to happen.:The stock market is in turmoil, TV channels are buzzing about HDFC Bank, and at the same time, the country's largest fund houses are quietly amassing shares. In March alone, mutual funds purchased approximately ₹17,250 crore worth of HDFC Bank shares.

News Topical, Digital Desk : In March 2026, when HDFC Bank's stock was continuously falling and there was panic in the market, the question in the mind of a common investor was what was happening with such a big bank. The sudden resignation of the bank's part-time chairman Atanu Chakraborty and his statement regarding ethical concerns scared the investors. As a result, the stock fell by more than 17.5 percent in the month of March, which became the biggest monthly decline in many years. But in this atmosphere of fear, an interesting picture emerged - while small investors were thinking of selling or panicking, the country's big mutual funds were considering this decline as an opportunity and were buying.

ICICI Prudential Mutual Fund led the pack, buying ₹5,073 crore. SBI Mutual Fund and Nippon India Mutual Fund followed, placing thousands of crores of rupees. This indicates that large domestic investors continue to have confidence in the bank's long-term business model and franchise.

On the other hand, foreign investors (FIIs) reduced their stake in HDFC Bank for the third consecutive quarter. This means that foreign money was withdrawing, while domestic funds were buying the same stock. This contradiction often occurs in the market when one side sees risk and the other value. Domestic funds likely believe that the current controversies and management questions are short-term, but the bank's fundamental strength will remain intact in the long term.

What caused the decline? This weakness in the stock came after the sudden resignation of the bank's part-time chairman, Atanu Chakraborty. He cited ethical concerns and disagreement with some of the bank's practices as the reason for his resignation. However, the bank told investors that the chairman did not share any specific details behind his statement and that there were no problems with the bank's operations.

Which funds bought the most? ICICI Prudential Mutual Fund made the biggest purchase during the March decline. This fund purchased additional shares worth approximately ₹5,073 crore.

After this - SBI Mutual Fund bought shares worth Rs 2,706 crore - Nippon India Mutual Fund bought shares worth Rs 2,145 crore - Parag Parikh Flexi Cap Fund bought shares worth Rs 2,037 crore - UTI Mutual Fund bought shares worth Rs 1,089 crore

-HDFC Mutual Fund bought shares worth Rs 1,075 crore
-DSP Mutual Fund bought shares worth Rs 822 crore

Apart from this, Aditya Birla Sun Life MF, Tata MF, Edelweiss MF, Canara Robeco MF and Mirae Asset MF also made purchases.

Mutual funds' stake increased
As of March 2026, 49 mutual funds held a total of 380.81 crore shares of HDFC Bank, whose value was Rs 2.79 lakh crore. In February, this holding was 360 crore shares.
That means, in just one month, the funds added a huge amount of shares.

Why did FIIs reduce their stake
While domestic institutions made purchases, foreign institutional investors (FIIs) reduced their stake in the March quarter.

-FIIs sold around 47.95 crore shares
-Stake reduced from 47.67% to 44.05%
-This was the third consecutive quarter when FIIs reduced their stake

What next?
Brokerage firm JM Financial believes the stock may remain under pressure in the short term as investors seek greater clarity on management and board stability. The brokerage added that the upcoming MD & CEO renewal process could also impact the stock.

However, the brokerage also notes that while the long-term outlook remains positive given HDFC Bank's strong franchise and valuation, the stock may remain range-bound in the short term.