Shares of IndusInd Bank rose nearly 3% in Wednesday’s session even as HSBC lowered its target price, reflecting a cautious outlook on the banking sector.
The stock gained 2.90% to Rs 774.30, up Rs 21.85 from its previous close of Rs 752.45. During the session, it traded in a range of Rs 765.95 to Rs 787.75, taking its market capitalization to approximately Rs 60,342 crore.
HSBC maintained a ‘buy’ rating on the stock but reduced its target price to Rs 880 from Rs 1,110 earlier. The brokerage highlighted that the ongoing Middle East conflict could impact demand, growth, and margins across financial institutions.
According to HSBC, liability-side pressures have started to emerge, while asset-side stress could also develop across multiple segments going forward. The brokerage has cut its estimates for loan growth, margins, and earnings per share (EPS) across the sector.
Despite the cautious outlook, HSBC continues to maintain a positive stance on select private sector banks, including IndusInd Bank.
As of Wednesday’s session, the stock remained in focus with steady buying interest.
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