Why Axis Bank share price has gained 21% in three days
BusinessToday.In May 28, 2020
Axis Bank share has gained nearly 21% in three days amid report that Global private equity (PE) firm Carlyle Group is likely to make an investment of around $1 billion in the private sector lender. Share price of Axis Bank which stood at Rs 336.95 on May 22 hit an intra day high of Rs 407.25 today, amounting to return of 20.86% in three consecutive sessions. Axis Bank share hit intra day high of Rs 407.25 today rising 5.14% compared to the previous close of Rs 387.35 on BSE.
Market capitalisation of the bank stood at Rs 1.13 lakh crore. The stock is trading higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages. Axis Bank stock has gained 12.78% in one week.
However, the share has fallen 46.56% since the beginning of this year and lost 50.18% during last one year.
35 of 47 brokerages rate the stock "buy" or 'outperform' and 12 "hold", according to analysts' recommendations tracked by Reuters. The stock hit its 52 week high of Rs 826 on June 6 , 2019 and 52 week low of Rs 285 on March 25 this year.
On Nifty, the stock rose up to 5.16% to Rs 407 against previous close of Rs 387. A report in The Economic Times said the lender has begun discussions with Carlyle Group on capital infusion.
"The conversation has been ongoing for almost a month. The Axis stock has been volatile. The brass seems to be warming up to the idea of another deep-pocket marquee investor in recent weeks," the newspaper quoted a source as saying.
However, in a clarification to bourses, the lender said the newspaper report was speculative.
"We would like to clarify that the news item is speculative and the Bank has not taken any such decision in this regard. As such no disclosure is required to be made under Reg.30 of the Listing Regulations and the Bank shall keep the Exchange duly informed as and when any decision is taken by it in this matter," Axis Bank said.
By Aseem Thapliyal