- Date : 14/03/2023
- Read: 2 mins
IndusInd Bank has crashed over 6% today and is down by over 7% in the past month.
IndusInd Bank has crashed over 6% today and is down by over 7% in the past month. We try to decode why the share price of IndusInd Bank is falling. Let us see!
Here are a few reasons why the IndusInd Bank share prices are falling:
Read: Should you buy IndusInd bank after its YoY profit increased?
JPMorgan Downgrade
JPMorgan downgraded IndusInd bank, owing to which the share of IndusInd Bank remained under pressure. The world-renowned brokerage went from "Buy" to "Neutral" for the Bank. Interestingly, the price target was reduced from Rs.1,400 to Rs. 1,060.
What Do Analysts Say?
Let's see what some renowned analysts say about the IndusInd Bank and its share price.
Citi
The brokerage gave the Bank a "Buy" rating. It has set a target price of Rs. 1,420/share. However, Citi cautioned that it would monitor the Bank closely to see its strategy and initiatives for increasing its profits.
Jefferies
Jefferies maintains a "Buy" rating for the Bank. The price target is set at Rs. 1,550. It believes the growth pace might hurt because of a two-year extension and not a three-year extension of the lender's CEO. However, it believes the Bank is still an attractive option for investors.
Morgan Stanley
The brokerage has a price target of Rs. 1,525/share and an "Overweight" rating.
Also Read: Can 2023 be a small and mid caps' year?
RBI came out with a mandate, leading to the IndusInd Bank share price falling. It is among the primary reasons for the fall in the share price. The mandate instructed the Bank to extend CEO Sumant Kathpalia's tenure by two years. The Bank's board was expecting a three-year extension for the CEO, to which the RBI responded with a two-year extension.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
