NEW DELHI: After falling more than 80 per cent in the past 10 weeks, shares of IndusInd Bank witnessed a sharp rebound on Thursday on the back of short covering in the counter.
The scrip traded nearly 45 per cent higher at Rs 436.70 in the morning trade, while the benchmark BSE Sensex was up over 2.50 per cent at 29,297 ahead of the expiry of March series futures and options (F&O) contracts later in the day.
Milan Vaishnav, Consultant Technical Analyst, Gemstone Equity Research and Advisory, said: “IndusInd Bank was sitting on one of the highest amount of shorts. Thursday’s rally is purely led by short covering. There were no significant reasons for the steep fall in the counter.”
On the other hand, BSE Bankex index was up over 6 per cent at 22,706. Shares of Axis Bank traded 13 per cent up at Rs 371. It was followed by Federal Bank (up 10 per cent), City Union Bank (up 8 per cent), ICICI Bank (up 8 per cent), HDFC Bank (up 6 per cent), RBL Bank (up 4 per cent), Kotak Mahindra Bank (up 3.50 per cent) and City Union Bank (up 2.34 per cent).
“Short covering and hopes of stimulus mainly supported the banking and financial sector on Thursday,” said Nirav Chheda, Technical Analyst at Nirmal Bang Securities.