The share price of IndusInd Bank has dropped by more than 32% in the last six months and more than 28% in the previous three. Private bank shares have fallen more than 42 percent in only one year. Despite a steep decline in the Indian stock market today, IndusInd Bank’s share price increased by almost 3% on Monday due to predictions of large passive fund inflows brought on by the probable doubling of its MSCI weight. On the BSE, shares of IndusInd Bank increased by as high as 3.80% to ₹973.30 each.
With MSCI currently using a half-float factor, the foreign room increased to 37%, surpassing the 25% threshold, as the December quarter shareholding pattern of IndusInd Bank revealed that the Foreign Portfolio Investors (FPI) had drastically decreased their stake in the private lender to 46.63% from 55.53% in the September quarter.
The current FII sell-off at IndusInd Bank has left headroom well over 25%, which may result in doubling the bank’s MSCI weight in the February 2025 review, according to Abhilash Pagaria of Nuvama Alternative & Quantitative Research.
IndusInd Bank’s weight in the MSCI index is anticipated to quadruple from 22 basis points to 44 based on its December ownership.
According to Nuvama Alternative Research, this weight increase is anticipated to draw inflows of $250 million to $300 million in IndusInd Bank shares, which might affect the price for three to five trading days. On February 28, the inflows and the impending MSCI rebalance will be modified.
IndusInd Bank Stock Price Outlook:
The share price of IndusInd Bank has dropped by more than 32% in the last six months and more than 28% in the previous three. Private bank shares have fallen more than 42 percent in only one year.
Over the last several months, IndusInd Bank’s stock has underperformed that of other banking firms. The stock’s short-term trend is still horizontal. The resistance is between ₹992 and ₹1,000, while the support is at ₹925. According to Ruchit Jain, Vice President, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services Ltd., we can only see a directional move following a breakout at any side from these levels.
Jain claims that the stock of IndusInd Bank would only show upward momentum if it breaks over the ₹1,000 mark; in the meantime, the short-term trend will continue to be sideways.
MSCI Rejig Expectations:
In the following MSCI index review in February 2025, there is a significant likelihood that five stocks will move from the MSCI Small Cap Index to the Standard Index.
The brokerage company Motilal Oswal Financial Services (MOFSL) has estimated that Coforge, One 97 Communications (Paytm), Coromandel International, UNO Minda, and Fortis Healthcare will be included in the MSCI Standard Index.
Federal Bank shares and GE T&D India have medium to low inclusion possibilities. On the BSE, IndusInd Bank shares were up 2.90% at ₹964.80 at 10:50 AM.
