Shares of HDFC Bank surged over 7 percent to hit their fresh 52-week high of Rs 1,285 on the BSE on September 23.
The stock has been on an upward rally since September 19 when it logged a mild gain of 0.63 percent. However, the stock witnessed a sharp gain of 9 percent on September 20 after the Finance Minister slashed corporate tax rate.
The corporate tax rate was cut by 800 basis points to 22 percent, without any exemption, from 30 percent.
HDFC Bank had an effective tax rate of 33.4 percent in the quarter ended March and experts say it will reap hefty benefit from the tax cut.
Rajat Rajgarhia, Managing Director & CEO at Motilal Oswal Financial Services told CNBC-TV18 that most private banks would be immediate beneficiaries of the tax cuts.
Moreover, brokerages have long term positive views on the stock.
Morgan Stanley, in a recent report, had said that HDFC Bank's loan growth will remain very strong for the next two to three years.
"Investment in technology and increase in rural penetration (organic and in partnership) should enable it to keep growing loans. There will be some quarterly volatility given the size, but the backdrop for the bank will keep growing at 18-20 percent," it said.
Terming HDFC Bank a "solid long-term play", Morgan Stanley has an 'overweight' view on the stock, with a target price of Rs 3,000.
Shares of HDFC Bank traded 5.41 percent higher at Rs 1,265 on BSE around 1210 hours.
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