IndusInd Bank Share Price Declines Further
IndusInd Bank’s stock continued its downward trend for the third straight session, slipping 3.53% to close at ₹936.80 on Friday. The stock has now fallen 34.36% in the last six months and is just 1.45% away from its 52-week low of ₹923.40, recorded on January 27, 2025.
Stock Trading Below Key Moving Averages
The stock is trading below all major Simple Moving Averages (SMAs), including the 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day SMAs, indicating continued weakness.
RBI Approves CEO’s Reappointment
The Reserve Bank of India (RBI) has approved Sumant Kathpalia’s reappointment as CEO and MD of IndusInd Bank for another year. Meanwhile, reports suggest that Nippon Life Insurance’s India unit is considering acquiring a minority stake in the bank. However, this information has not been independently verified.
Market Experts Predict Mixed Trends
Market analysts have differing opinions on the stock’s future:
- Long-term opportunity: Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, suggests that long-term investors with a high-risk appetite should buy on dips.
- Short-term weakness: Ravi Singh, Senior VP of Retail Research at Religare Broking, warns that the stock could drop to ₹900, with resistance at ₹960.
- Technical outlook: Osho Krishan, Senior Research Analyst at Angel One, highlights that if the stock falls below the ₹910-₹900 support zone, it could decline further. However, a breakout above ₹1,000-₹1,050 may lead to recovery.
Technical Indicators Show Weakness
- The Relative Strength Index (RSI) is at 32.84, nearing the oversold level of 30.
- The stock’s P/E ratio is 10.10, and its P/B value is 1.12.
- Earnings per share (EPS) stands at ₹92.75, with a return on equity (RoE) of 11.07%.
Promoter Holding & Investor Sentiment
As of December 2024, promoters held a 16.29% stake in IndusInd Bank. Analysts suggest that investors should closely watch support levels and market trends before making trading decisions.
Conclusion
While IndusInd Bank’s stock remains weak, long-term investors may consider buying on dips, while short-term traders should be cautious. The ₹900 support level is crucial, and a break above ₹1,050 could trigger a reversal.
