IndusInd Bank Shares Drop 4%, Near 52-Week Low – What’s Next for Investors?
IndusInd Bank’s share price continued its downward trend, falling for the third straight session on Friday. The stock declined by 3.53% to close at ₹936.80, marking a 34.36% correction in six months. It now stands just 1.45% away from its 52-week low of ₹923.40, recorded on January 27, 2025.
Stock Performance & Technical Analysis
- The stock is trading below all key moving averages, including 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day SMAs.
- 14-day Relative Strength Index (RSI): 32.84 (Approaching the oversold zone).
- Support Level: ₹910-900 (If breached, further decline is possible).
- Resistance Level: ₹1,000-1,050 (A breakout could drive recovery).
Market Expert Opinions
- Long-term investors with high risk appetite can consider buying on dips, says Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
- Short-term investors may exit at current levels, as the stock appears weak and could fall to ₹900, suggests Ravi Singh, Senior Vice-President at Religare Broking.
- Osho Krishan, Senior Analyst at Angel One, points out that IndusInd Bank is underperforming its peers and trading below all major EMAs.
Key Developments Impacting Stock Price
- RBI Approval: The Reserve Bank of India has approved the reappointment of Sumant Kathpalia as CEO and MD for one more year.
- Stake Acquisition Rumors: Bloomberg reported that Nippon Life Insurance Co. may consider acquiring a minority stake in the bank. However, this is yet to be confirmed.
Financial Metrics
- P/E Ratio: 10.10
- P/B Value: 1.12
- Earnings Per Share (EPS): ₹92.75
- Return on Equity (RoE): 11.07%
- Promoter Holding (as of December 2024): 16.29%
Future Outlook – What Should Investors Do?
The stock’s technical weakness and near-term volatility indicate possible further correction. However, a breakout above ₹1,000 could bring upside momentum. Long-term investors may consider buying at lower levels, while short-term traders should watch for support at ₹900 before making a move.
