Shares of IndusInd Bank in the pre-opening session jumped by up to 3.5% and opened the trading day at Rs. 423 . The surge may be due to the NSDL data that reveals that FPIs have upped their stake in the bank to 72.07% as against 55.22% as at the end of December quarter.
Nifty Bank in the pre-opening also traded higher by 3% to a high of 20,096.35
As per brokers, major hike in the stake in the bank took place when Indian markets saw huge sell-off during Februar- March period due to the coronavirus.
Further raising the red flag, NSDL said FPIs can now buy only 2% stake in the bank which translates into 13.98 million shares. So, as per the ruling, FPIs can now have a maximum stake of 74% in Indian private banks.
Indusind Bank shares have crashed heavily owing to a number of reasons such as bad loans after the Yes Bank shareholders suffered a crisis. The share price of Indusind Bank crashed by 87 per cent touch a low of Rs235 on March 24 from a 52-week high of Rs1,822 in April 2019.