Share of private sector lender IndusInd Bank hit an all-time high amid a record-breaking rally in benchmark indices today. IndusInd Bank share zoomed to the upper circuit of 10%, rising Rs 105.35 to Rs 1,159.20 on BSE.
The share further rose to Rs 1,186.35, gaining 12.57% above the previous close after circuit limit for the stock was revised from 10% to 15% due to high buying pressure.
Banking stocks led the gains in today's rally amid positive news coming from the telecom sector. The Union Cabinet cleared a relief package for the telecom sector yesterday.
The government has announced a four-year moratorium on the AGR dues of debt-laden telcos who have huge exposure to the banking sector.
The banking sector has a total exposure of around Rs 29,000 crore to debt-laden Vodafone Idea. Country's largest lender State Bank of India has the highest exposure of Rs 11,000 crore. Other lenders such as IDFC First Bank, Yes Bank and IndusInd Bank, too have considerble exposure in their books to the struggling telco.
While, bank Nifty was trading 1.34% or 495 points higher at 37,351, BSE bankex rose 485 points to 42,555.
IndusInd Bank share had closed at Rs 1,053.85 in the previous session. The share was the top gainer on both Sensex and Nifty today.
Total 38.93 lakh shares of the lender changed hands amounting to turnover of Rs 410.15 crore on BSE.
Market cap of the bank rose to Rs 91,434 crore. The share had hit 52-week low of Rs 485 on September 24, 2020.
The stock has gained 15.67% in the last 3 days. It opened 2% higher at Rs 1074 on BSE.
IndusInd Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.The share has gained 86.26% in one year and risen 29.48% since the beginning of this year.
On Nifty, the stock hit record high of Rs 1,186.50 against previous close of Rs 1,053.95.
On September 7, brokerage Sharekhan retained its buy call for the share with a target price of Rs 1,340, valuing the bank at 1.97 times FY23 book value.
"The bank has healthy provision cover of 72% with covid provision buffer at 1% of loans to address any further stress on the asset side. The capital adequacy at 17.6% (Tier-I capital at 16.9%) is comfortable and the bank aspires for 16-18% growth in advances over the medium term," the brokerage said.
Meanwhile, Sensex touched all-time high of 58,908, despite weak global cues. Nifty rose to a record peak of 17,576 in early trade today.
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