Nifty Bank Ends 3 Session Losing Streak, IndusInd Bank Emerges As Top Gainer

The Indian stock market extended losses for the second day as the benchmark indices closed lower on March 12. The Nifty shed 27.4 points or 0.12 per cent to close at 22,470.5 levels. On the other hand, the 30-share Sensex fell by 72.56 points or 0.1 per cent to 74,029.76 levels.

Even as the benchmark indices closed lower for the second straight day, the Nifty Bank index snapped its three-session losing streak. The Nifty Bank Index comprises the most liquid and large capitalised Indian Banking stocks and captures the capital market performance of Indian banks. The sectoral index declined 1.59 per cent from 48,627.7 levels in three sessions between March 6 and March 11 to close at 47,853.95 levels on March 11. On March 12 the index closed higher by 0.42 per cent or 202.7 points at 48,056.65 levels.

IndusInd Bank and Kotak Mahindra Bank emerged as top gainers among Nifty Bank index constituents. Shares of IndusInd Bank closed higher by 4.43 per cent at Rs 685 apiece on the NSE, snapping a five-session losing streak. Earlier today the stock gained 6.35 per cent to hit an intraday high of Rs 697.65 apiece.

Notably, the rise in the share price comes a day after the stock crashed over 33 per cent in its five-session losing streak. IndusInd Bank’s share price began declining after the private sector lender informed the exchanges about discrepancies in its foreign exchange derivatives portfolio. The bank added that the issue was likely to impact 2.35 per cent of its total net worth. The recovery rally seen in the stock may have been caused by the bank’s management sharing optimistic views. According to a report by CNBC-TV18 IndusInd Bank CEO Sumant Kathpalia projected that the bank might be able to absorb the losses in the ongoing quarter itself.

"The full year won't be a loss at all. And I think Q4 will also be in profit...The bank will start seeing great profitability from Q1," Kathpalia said.

Shares of Kotak Mahindra Bank shares closed 2.31 per cent higher at Rs 1,979.95 apiece on the NSE and emerged as the second biggest gainer among Nifty Bank constituents. Earlier in the day, the stock gained more than 3 per cent to hit a 52-week high of Rs 1997.7 per share.

Nifty Bank index heavyweight HDFC Bank Ltd also closed in the green on March 12 leading the index into the green zone. HDFC Bank which holds the highest weightage in the Nifty Bank Index closed higher by 1.56 per cent at Rs 1,711.8 apiece on the NSE. Earlier today the stock gained nearly 2 per cent to hit an intraday high of Rs 1,718.5 apiece.

On March 14, the 12-share Nifty Bank index witnessed eight declines. Shares of AU Small Finance Bank declined the most as they closed lower by 2.62 per cent at Rs 508.40 apiece on the NSE. Shares of Punjab National Bank (PNB), Axis Bank and IDFC First Bank also closed lower by up to 1.45 per cent on the NSE.

At the current levels, the index is trading 11.76 per cent lower than its all-time high of 54467.35. Meanwhile, the Nifty 50 has cracked 14.48 per cent from its all-time high level of 26,277.35 and the Sensex is trading 13.89 per cent lower than its all-time high level of 85,978.25.