Why Axis Bank Share Price is Falling

Axis Bank shares are down 5% in the last five days. The stock is also down 6% in 2024.

The bank is the third-largest private bank and the seventh-largest bank in India. Yet, shares of the bank are down despite a rise in the benchmark indices.

So, what's causing the decline in the stock price?

Let's find out...

Weak Market Sentiment

Indian benchmark indices have been reeling under immense selling pressure over the last few days amid mixed global cues.

Simmering tensions between Israel and Iran weighed on market sentiment along with investor concerns about a delay in US rate cuts.

This resulted in losses of select banking heavyweights, such as HDFC Bank, ICICI Bank, and Axis Bank.

The stock of Axis Bank was among the biggest daily and weekly losers on the Nifty 50 index as around 21 million shares traded in six separate block deals.

It traded in the range of Rs 997-1,005, a discount to Thursday's closing price of Rs 1,024.

A discounted trading range indicates weak investor sentiment and potential concerns regarding the bank's financial performance or market outlook.

What Next?

With investors already rattled by sticky inflation and the prospect of higher-for-longer interest rates, the escalation of the Middle East crisis may inject fresh volatility into markets.

As the conflict widens, many say oil could surpass US$ 100 a barrel and expect a flight to US treasuries, gold, and the dollar, along with further stock-market losses.

So, while investors are unwinding some of the declines seen so far in April, the bigger question here is a market crash imminent?

Here's what we wrote about it recently:

• There are very few certainties in the markets but if there is one thing that every market participant agrees on it's this: Markets hate uncertainty. If there is to be a serious correction the Indian stock market, uncertainty will play a big role in it.

What about a crash in the long term?

You can find out in our recent article: Will the Stock Market Crash because of the Iran-Israel Conflict?

How Axis Bank Share Price has Performed Recently

In the past five days, shares of the company have fallen 5%.

However, the stock is up 5% in the past six months and around 18% in the year gone by.

The stock touched its 52-week high of Rs 1,151.50 on 5 December 2023 and a 52-week low of Rs 853.75 on 28 April 2023.

At the current price, the company trades at a price to book value multiple of 2.4x.

About Axis Bank

Axis Bank is the third largest private sector bank in India.

It offers the entire spectrum of financial services to customer segments covering large and mid-corporates, MSME, agriculture, and retail businesses.

The bank also offers asset management and brokerage services through its subsidiaries.

It has been at the forefront of offering digital banking services to its customers and is adopting new technologies, such as the cloud, to improve the customer experience.

For more details about the company, you can have a look at Axis Bank's fact sheet and Axis Bank's quarterly results on our website.

For a sector overview, you can read our banking sector report.

You can also compare Axis Bank with its peers on our website:

Axis Bank vs HDFC Bank

Axis Bank vs ICICI Bank

Axis Bank vs Kotak Mahindra Bank

Axis Bank vs Yes Bank

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...