India's top private financial institution, HDFC Bank, suffered a significant setback on Wednesday, with its share value plunging nearly 4%. This decrease represents the most severe single-day fall since May, positioning the bank as the main decliner on both the Sensex and Nifty 50 indices.
The bank's recent disclosure concerning its impending merger with HDFC Ltd. preceded this slump in value. HDFC Bank indicated that this consolidation would significantly impact critical financial indicators.
Adding to the bank's challenges, Nomura, a brokerage firm, downgraded its rating of HDFC Bank's stock to neutral from buy. Simultaneously, it lowered its price target for the bank's shares, further exacerbating the bank's stock market struggles. These actions by Nomura played a crucial role in the decline of HDFC Bank's share value on Wednesday.
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