5 Best Indian Stocks to Buy According to Hedge Funds

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1. HDFC Bank Limited (NYSE:HDB)

Number of Hedge Fund Holders: 49

HDFC Bank Limited (NYSE:HDB) is one of the Best Indian Stocks to Buy According to Hedge Funds. On April 18, Reuters reported that the bank posted a stronger-than-expected increase in Q4 profit, thanks to the pick-up in lending to consumers. This was despite lending ​margins remaining weak. HDFC Bank Limited (NYSE:HDB)’s standalone net profit came at INR 192.2 billion ($2.08 billion) for Q4 2026, just surpassing the analysts’ estimate of INR 191.16 billion, as per data compiled by LSEG.

Reuters highlighted that loan demand in India saw improved momentum in H2 of the fiscal year ended in March, with easing inflation and reduced taxes aiding household spending as well as corporate borrowing. HDFC Bank Limited (NYSE:HDB)’s advances went up by 12% in Q4 2026 from a year earlier. This was mainly because of retail loans, which include mortgages and ‌personal ⁠debt. Also, total deposits increased by 14.4%.

HDFC Bank Limited (NYSE:HDB) offers banking and financial products and services.

While we acknowledge the potential of HDB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HDB and that has 100x upside potential, check out our report about the cheapest AI stock.

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