IndusInd Bank Rides Against the Market Tide

Even as the broader market stumbled, IndusInd Bank marched to its own beat on Monday, climbing over 3% to hit ₹973.30 on the BSE. The buzz? Hopes of a big-ticket passive fund inflow, thanks to a likely doubling of its MSCI weight in the February review. Foreign Portfolio Investors have been trimming their stakes, dropping from 55.53% in September to 46.63% by December. While that might sound like bad news, it’s actually created an opportunity—the bank’s “foreign room” now stands comfortably above the 25% threshold MSCI uses for weighting adjustments. If MSCI doubles the bank’s weight to 44 basis points from the current 22, we could see inflows north of $250 million. That’s the kind of liquidity injection that grabs attention. Market watchers predict these inflows will start shaping trading action in late February, coinciding with MSCI’s rebalancing date. For now, IndusInd’s stock is dancing within a tight range—support at ₹925 and resistance at ₹992-1,000. A decisive breakout will likely determine its next big move.With its recent underperformance compared to other banking peers, IndusInd’s current rally might just be the start of something bigger. All eyes are on whether this MSCI boost can flip the script for the stock in the weeks to come.

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