Axis Bank share falls 3% despite board's nod to raise Rs 15,000 crore

Axis Bank share price fell after two sessions of gain today despite the lender' s board  clearing the proposal to raise up to Rs 15,000 crore to increase capital buffers amid coronavirus pandemic. Share price of Axis Bank fell 2.76% to Rs 421.30 against previous close of Rs 433.25 on BSE. Axis Bank share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

gained 4.42% to Rs 424.45 against previous close of Rs 406.50 on BSE.  Axis Bank share has gained 4.43% in last 2 days.

The share trades higher than 20 day and 50 day moving averages but lower than 5 day, 100 day and 200 day moving averages

However, the large cap stock  has lost 47% during last one year and fallen 43.48%  since the beginning of this year.     

In one month, the share has gained 4% on BSE. Market capitalisation of the bank stood at Rs 1.21 lakh crore.

35 of 46 brokerages rate the stock "buy" or 'outperform', 11 "hold" and one underperform, according to analysts' recommendations tracked by Reuters. The stock hit its 52 week high of Rs 813.50 on July 7 , 2019 and 52 week low of Rs 285 on  March 25 this year.  

Fundraising will be done through issue of equity shares or depository receipts or any other instruments or securities representing convertible securities linked to equity shares, Axis Bank said in an exchange filing. The instruments may also include qualified institutional placement, American depository receipts, global depository receipts programme, preferential allotment, or any other means necessary, it added.

On June 29, credit rating agency S&P Global Ratings (S&P) downgraded the Foreign Currency Ratings of the bank, saying, "We lowered our ratings on Axis to reflect our expectation that heightened economic risks facing India's banking system will affect the bank's asset quality and financial performance."

S&P said the stable outlook reflects view that ratings on Axis already factor in some deterioration in the bank's asset quality and performance over the next 12 months. The stock fell 5.21% intra day after S&P Global Ratings lowered the lender's ratings due to increased economic risks for banks operating in India.