HDFC Bank Crash 27% in Six Months | FII Selling Continues, While DII Buying Rises
HDFC Bank is one of the major heavyweight banking stocks in the Indian stock market. However, the stock has come under strong selling pressure and has fallen sharply, trading near a two-year low.
The key reason behind the weakness is the continuous reduction in Foreign Institutional Investor (FII) holdings.
According to the latest June 2026 shareholding data, FII holding in HDFC Bank declined to 41.82%, compared with 47.67% in December 2025. This represents a significant reduction of 5.85 percentage points in six months.
At the same time, Domestic Institutional Investors (DII) increased their holding significantly. DII ownership rose from 37.18% in December 2025 to 41.73% in June 2026, an increase of around 4.55 percentage points.
This shows a clear shift in ownership from foreign investors to domestic institutional investors. FIIs have been reducing their exposure, while DIIs have increased their stake and absorbed a significant portion of the selling pressure.
Despite strong domestic institutional buying, HDFC Bank shares have continued to decline. The stock has fallen around 27% from its recent high, highlighting the persistent selling pressure on the counter.
The major concern for investors is whether continued FII selling will keep the stock under pressure, even as domestic institutions continue to accumulate shares.
For HDFC Bank, the next important factors to watch are FII flows, DII buying, earnings growth, net interest margins and the bank's ability to improve growth after the merger-related balance-sheet adjustments.
The ownership data clearly shows that while DIIs are supporting HDFC Bank through increased buying, the continued reduction in FII holdings remains an important factor behind the stock's weak performance.