The ongoing turmoil in the IndusInd Bank Ltd stock has dragged the scrip 60% lower from its 52-week high reached in April last year. Shares of IndusInd Bank reached a 52-week high of Rs 1576 on April 8, 2024. In the current session, the stock fell to a four-year low of Rs 649 on BSE. Amid huge selling pressure, the stock entered the oversold zone with its RSI slipping to 27.8 in the current session.
Investor wealth shrinked by Rs 19,059 crore on BSE. Market cap of the bank fell to Rs 51,102 crore against Rs 70,161 crore in the previous session.
AR Ramachandran, SEBI-registered Independent analyst says, "IndusInd Bank is oversold and also bearish on the Daily charts with strong resistance at Rs 720. A daily close below the support of Rs 650 could lead to a target of Rs 605 in the near term."
The stock ended 27.17% lower at Rs 655.95 in the current sesion against the previous close of Rs 900.60 on BSE. The banking stock saw the highest turnover of Rs 289.73 crore as 41.93 lakh shares of the firm changed hands on BSE. IndusInd Bank shares stood lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
In a year, the stock of IndusInd Bank has fallen 57.41 per cent and is down 53.87% in six months.
The stock has taken a hit from two developments.
On Monday, the lender said that during an internal review of its derivative portfolio, it noted some discrepancies in these account balances. The detailed internal review has estimated an adverse impact of approximately 2.35% of bank’s net worth as of December 2024. This could lead to an adverse impact on its net worth by Rs 1,530 crore. The bank’s net worth stood at Rs 65,102 crore as of December 2024.On some discrepancies in these account balances in its derivative portfolio, the lender said it has appointed a reputed external agency to independently review and validate the internal findings, without disclosing details on the nature of the discrepancies.
"The bank's profitability and capital adequacy remains healthy to absorb this "one-time impact," it added.
Second development, which has affected the stock is RBI clearing reappointment of incumbent bank CEO Sumant Kathpalia for one year only agaisnt against the board’s application for three years. This is negative, said brokerage Nuvama as it believes IndusInd Bank will likely use the one year to transition to a new CEO.