HDFC and HDFC Bank erased Investors' Wealth Worth ₹2.5 lakh crore

Two of the biggest companies in India, HDFC and HDFC Bank have recently suffered a massive selloff.  The two giants of India’s financial sector have witnessed a meltdown never seen before. As a result of this mass sell-off, wealth worth around ₹2.5 lakh crore of investors has been erased in the past two weeks.  HDFC is India’s largest housing finance company, and before the historic sell-off, HDFC was amongst the top 10 companies in terms of valuation, among the likes of Reliance Industries, TCS, HDFC Bank, HUL, State Bank of India, among others.

This sell-off has removed India’s largest housing finance company from the list of Top ten companies in India in terms of valuation. Recently, a few weeks ago HDFC and HDFC bank announced a merger. The merger seemed fruitful for both the companies as soon as the news of their merger broke out,  HDFC Bank and HDFC shares both increased by  14% which added ₹1 lakh crore in investor wealth. For a while, HDFC Bank and HDFC collectively were the second largest company in India in terms of market capitalization, outperforming TCS and second only to Reliance Industries.