The share price Indusind Bank erased early gains and fell over 2% on Wednesday, as the lender received an rating downgrade by brokerage firm Moody's Investors Service.
Moody's on Tuesday downgraded Indusind Bank's long-term local and foreign currency deposit ratings to Ba1 from Baa3 and its BCA to ba2 from ba1 and kept the rating outlook negative.
Earlier the stock price of Indusind Bank opened with a gain of 3.46% and later touched an intraday high of Rs 452, rising 3.94% on BSE, on back of rally in banking indices.
Where 'Private Banks' sector gained by 2.15%, Sensex gained 0.84% intraday.
Although Indusind Bank shares lost initial momentum and fell 2.01% lower to the intraday low of Rs 426.1. Today, the stock has fallen after 6 days of consecutive gain
Indusind Bank stock has fallen 7.83% in one month and 71% year-to-date. However, the stock has increased 17.4% value in the last week of trade.
Indusind Bank stock price trades higher than 5, 20 and 50-day moving averages but lower than 100 and 200-day moving averages.
The rating agency said that the downgrade was on back of economic disruptions caused by the coronavirus and the downgrade of the sovereign rating.
Moody's has taken the rating action rating action on ten other Indian banks as well that include State Bank of India, HDFC Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, Canara Bank, Bank of India, Central Bank of India, Indian Overseas Bank and EXIM Bank.InterGlobe Aviation share price rises over 12% despite Rs 871 crore loss in Q4