Axis Bank gains on bargain hunting

Axis Bank rose 1.66% to Rs 852.60 at 13:21 IST on BSE, on bargain hunting after recent fall.

Meanwhile, the BSE Sensex was up 288.27 points, or 1.6%, to 18,284.42

On BSE, 6.47 lakh shares were traded in the counter compared with average volume of 2.19 lakh shares in the past one quarter.

The stock hit a high of Rs 868 and a low of Rs 817.10 so far during the day. The stock hit a 52-week low of Rs 785.60 on Wednesday, 28 August 2013. It hit a 52-week high of Rs 1,549 on 20 May 2013.

The stock had underperformed the market over the past one month till 28 August 2013, sliding 24.25% compared with the Sensex's 8.87% fall. The scrip had also underperformed the market in past one quarter, declining 42.9% as against Sensex's 10.74% fall.

The large-cap private sector bank has an equity capital of Rs 469.08 crore. Face value per share is Rs 10.

Shares of Axis Bank had been on downtrend recently, falling 14.56% in three trading days to Rs 838.70 on 28 August 2013 from a recent high of Rs 981.60 on 23 August 2013.

Logging decline in eight of nine trading days, the Axis Bank stock had slumped 27.07% to Rs 838.70 on 28 August 2013 from a recent high of Rs 1,150.05 on 14 August 2013. The fall was triggered by MSCI's announcement of excluding the private sector bank from its standard and large cap indices with effect from 2 September 2013. MSCI made the announcement on 15 August 2013, when the Indian stock market was shut for a public holiday.

MSCI Barra is a leading provider of benchmark indices and risk management analytics products. Many global mutual funds are linked with MSCI indices. Hence, deletion of a stock from the MSCI index leads to outflow of passive funds that use the MSCI index to benchmark their portfolios.

Axis Bank's net profit jumped 22.14% to Rs 1408.93 crore on 15.87% increase in total income to Rs 9059.12 crore in Q1 June 2013 over Q1 June 2012.

Axis Bank is the third largest private sector bank in India. It has a large footprint of 1947 domestic branches (including extension counters) and 11,245 ATMs spread across the country as on 31 March 2013. The bank also has overseas offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.

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