Shares of IndusInd Bank Ltd have been on a downward trend, falling for the third consecutive session on Friday. The stock saw a significant drop of 3.53 per cent, settling at Rs 936.80. This decline marks a correction of 34.36 per cent in the last six months, bringing it 1.45 per cent away from its one-year low of Rs 923.40, recorded on January 27, 2025.
Approval from the Reserve Bank of India (RBI) has been granted to reappoint Sumant Kathpalia as the chief executive officer and managing director of IndusInd Bank for another year. Additionally, there are reports from news agency Bloomberg, citing sources, suggesting that Nippon Life Insurance Co’s India unit might be considering acquiring a minority stake in the bank. However, this information has yet to be independently verified by Business Today.
Market experts have expressed mixed opinions on the outlook for IndusInd Bank. While some suggest that traders with a long-term perspective and a high tolerance for risk may find value in accumulating the stock during dips, others view the near-term charts as ‘weak’.
According to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, “Long-term investors with a high-risk appetite can add this stock on dips.” On the contrary, Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, believes that “the stock looked weak on daily charts and can slip towards Rs 900 in the near term. On the higher end, resistance will be at Rs 960. Short-term investors can consider exiting at current levels.”
Osho Krishan, Senior Research Analyst specializing in Technical & Derivatives at Angel One, emphasized the underperformance of IndusInd Bank compared to its counterparts. He highlighted that the stock is currently hovering near its 52-week low and trading below its major exponential moving averages. Krishan mentioned a crucial support level around the Rs 910-900 zone, indicating a potential further decline if breached. Conversely, a breakout above the Rs 1,000-1,050 range could help the stock regain momentum.
From a technical standpoint, the stock is trading below various simple moving averages and carries a 14-day relative strength index of 32.84, indicating an oversold position. The price-to-earnings ratio stands at 10.10 with a price-to-book value of 1.12. Earnings per share are reported at 92.75, accompanied by a return on equity of 11.07.
Promoters currently hold a 16.29 per cent stake in IndusInd Bank as of December 2024.
In conclusion, the trajectory of IndusInd Bank’s stock remains uncertain, with analysts offering differing opinions on its future performance. Investors are advised to exercise caution and seek guidance from a qualified financial advisor before making any investment decisions.
