HDFC Bank’s stock has fallen 27% in 2026, making it one of the worst performers on the Nifty, while ICICI Bank has gained 1.6%. Yet mutual funds appear to be moving in the opposite direction, adding to HDFC Bank and reducing exposure to ICICI Bank.
The divergence is turning India’s largest private-sector banking stocks into a fresh test of whether domestic investors are positioning for a recovery in HDFC Bank or simply buying a cheaper stock while trimming one that has already outperformed.
