Shares of IndusInd Bank have risen 36% from their 52-week low, extending gains for the third consecutive session today. IndusInd Bank stock hit a 52-week low of Rs 763.75 on June 23, 2022 and was trading at Rs 1,041 in the afternoon session today, implying a rise of 36.58% from its yearly low.
Shares of IndusInd Bank gained over 1% to Rs 1046 today against the previous close of Rs 1031.25 on BSE. On Nifty , traded 1.15% higher at Rs 1043. The stock of the lender has lost 14.74% this year and risen 12% in the last one year. Total 0.73 lakh shares of the firm changed hands amounting to a turnover of Rs 7.59 crore on BSE. Market cap of the bank rose to Rs 80,778 crore.
In terms of technicals, the relative strength index (RSI) of IndusInd Bank stands at 38.2, signaling it’s trading neither in the overbought zone nor in the oversold zone. The banking stock has a one-year beta of 1.4, indicating very high volatility during the period. IndusInd Bank shares are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The stock hit a 52-week high of Rs 1275.25 on September 20, 2022 and a 52-week low of Rs 763.75 on June 23, 2022.
On the outlook of the stock, brokerage Jefferies said it is the top pick in the sector. It sees an upside of 55% and has assigned a target price of Rs 1,550 on the banking stock.
On March 14, brokerage Sharekhan gave a target of Rs 1400 for the private sector lender. That time, the market price of IndusInd Bank was Rs 1072.2.
“IndusInd Bank (IIB) has recovered from its past challenges and has been progressing well on guided lines. Strong growth potential from a well-diversified loan book with a rising share of retail loans along with healthy capital ratios gives loan growth visibility. The bank is also speeding up its efforts to improve the retail liability franchise, which is a key positive. Retail deposits have gone up from 26% in FY2019 to 42% in 9MFY2023. Increasing share of retail deposits has been a key focus area for the bank, with 87% of incremental deposits over FY2020-9MFY2023 coming from retail deposits and CASA,” said the brokerage.
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