IndusInd Bank Surges 4% After Goldman Sachs Raises Stake In The Lender

Shares of IndusInd Bank rose over 4 percent on Thursday to an intraday high of Rs 442 apiece on NSE. The third consecutive session of a surge in the stock comes after reports said that Goldman Sachs (Singapore) Pte-ODI bought 1.4 million shares of the private lender in an open market transaction on Wednesday at an average price of Rs 430.3 apiece. The deal's cost was Rs 176.42 crore.

The share value of the lender was free-falling in late March after RBI (Reserve Bank of India) took over the operations of troubled Yes Bank, causing panic among domestic investors and depositors.

However, on the contrary, foreign portfolio investors (FPIs) raised their stake in IndusInd Bank from 55.22 percent in December 2019 to 72.07 percent as on 8 April as per data from depository company NSDL verified by Hindu Business Line. Brokers believe that this could be due to increased confidence among FPIs after the Yes Bank episode that assured them that the Indian government will not allow private banks to fail.

Meanwhile, Macquarie cut IndusInd Bank's price target by 70 percent on Wednesday to Rs 470 from the earlier Rs 1,558.