Due to this decision of the company, the shares are falling continuously, the brokerage firm has also reduced the target price, now buy or sell?

HDFC Bank & HDFC Share: There is a continuous decline in the shares of HDFC Bank (HDFC bank stock), India's largest private bank. Some brokerages have reduced their target prices on HDFC Bank shares after reporting lower-than-expected earnings for the March quarter. Stocks are trading lower for the 9th consecutive trading session due to earnings disappointment and cut in target price. Today HDFC Bank shares are trading at Rs 1,364.15, down about 3 per cent on BSE. At the same time, HDFC's stock is down by 2.96% today and the company's shares are trading at Rs 2196.15. Earlier on Monday, HDFC Bank stock closed down 4.7% at ₹ 1,395.35. Shares of HDFC Bank have fallen more than 9% in the last five trading sessions.Brokerage reduced target price
Most brokerages have maintained 'buy' ratings but have reduced target prices. According to the Economic Times report, Nomura has reduced the target price from ₹ 1,955 to ₹ 1,705 while retaining the 'buy' rating. At the same time, Yes Securities has retained the 'Add' rating on the bank, but has reduced the target price to Rs 1,668 from Rs 1,900.
Edelweiss has reduced the target price from ₹2,000 to ₹1,860 keeping the 'buy' intact. While Emkay Global reduced the target price to Rs 1,950 from Rs 2,050. CLSA maintains 'Buy' rating on HDFC Bank, but has preferred ICICI Bank, Axis Bank and SBI shares over HDFC Bank.
Kotak Institutional Equities, on the other hand, said the stock is unlikely to be an outperformer among large banks. "We are again at a point where the risk of de-rating is high if further uncertainties arise during the merger," Kotak Institutional said.Reasons for the fall in shares
The brokerage said the fall in net interest margin is a disappointing factor. If the brokerage firm is to be believed, the uncertainty regarding the merger may have an impact on the stock going forward. The company's Q4 results have also been disappointing.
Ravi Singh-Vice President and Head of Research-ShareIndia told Live Mint that HDFC Bank's growth in Q4 was seen across products across segments. The merger with HDFC Ltd is going to benefit the bank in the long run. However, HDFC Bank is also witnessing some profit-booking due to the overall correction in the broader indices. In the near future, investors can invest in the stock around 1,350 levels with a target price of Rs 1,650.