As one of the leading banks in India, Axis Bank is a vital component of the country’s financial landscape. With shares trading on the National Stock Exchange (NSE), the performance of the bank’s stock has a direct impact on the larger economy. So, what should prospective investors know about the Axis Bank share price? In this article, we’ll provide an overview of the factors that affect the price of Axis Bank stock, and how it has been performing in recent months.
1. Overview of Axis Bank Share Price
Axis Bank Ltd is one of India’s largest private sector banks by assets. In the current share market, Axis Bank’s share price has been on a constant roll. With a market capitalisation of ₹ 8.28 trillion, Axis Bank is the most valuable private sector bank in terms of market capitalisation in India. The BSE Sensex averaged 25,820.77 points as of 8th June 2021, as detailed below.
- Open Price: ₹778.20
- High Price: ₹780.00
- Low Price: ₹766.05
- Close Price: ₹768.85
Year-to-date Performance
- YTD Low: ₹462.90
- YTD High: ₹780.00
- YTD Change: +64.38%
The YTD performance of Axis Bank’s stock has been impressive as investors have gained 64.38% in 2021. Moreover, the 52-week high exceeded the earlier highs of ₹782.95 (14th June 2018) and ₹764.75 (17th November 2020). However, Axis Bank’s share price is expected to remain volatile in the future with the uncertainty in the markets.
2. Impact of Recent Events on Axis Bank Share Price
Axis Bank is India’s third largest private sector bank and the recent events such as demonetization, GST implementation and NPA issue have significantly impacted its share price.
The implementation of demonetization caused an initial hit in share prices of the bank, followed by a sharp recovery. In 2017, Demonetization had a significant impact on the bank’s revenues as well as profits, which consequently caused the share prices to remain volatile for the rest of the year.
In 2018, the share prices further declined due to the issues surrounding non-performing assets (NPAs) of the bank. The company set aside Rs. 22 billion to cover bad loans, leading to stock prices falling. The GST implementation posed a challenge to the bank in terms of compliance, as well as in terms of technological and operational expenses. This has had a negative effect on the share prices.
- The demonetization significantly impacted Axis Bank’s share prices over 2017 followed by a sharp recovery.
- The issue of non-performing assets and GST implementation posed a challenge to the company and lead to a further decline in share prices.
3. Analyzing the Technical Indicators of Axis Bank Share Price
The price of a share of Axis Bank Limited is affected by a broad range of technical indicators, including historical price patterns, trading volume, and momentum. Analyzing such technical indicators helps investors to understand the market sentiment, assess the health of the bank, and identify buying and selling opportunities.
When analyzing the technical indicators of the Axis Bank share price, investors should focus on the following points:
- Moving Average Convergence Divergence (MACD) Indicator: The MACD indicator shows the relationship between a 26-day and 12-day exponential moving average of a share price. When the MACD crosses above the signal line, it is a bullish sign, indicating that the share price is likely to appreciate. On the other hand, when the MACD crosses below the signal line, it is a bearish sign, indicating that the share price is likely to depreciate.
- Relative Strength Index (RSI): The RSI shows how a share price has performed relative to its past performance and the overall market. When the RSI value is above 70, it is considered to be overbought and the share price is likely to fall. When the RSI value is below 30, it is considered to be oversold and the share price is likely to rise.
- Volume: Trading volume indicates the amount of buying and selling activity in the market. High trading volumes indicate strong market sentiment and are usually a good sign for the share price of a company.
Investors should use this information to make informed investment decisions.
4. Summary of Axis Bank Share Price Outlook
Axis Bank is one of the leading financial institutions in India. The stock price of the bank has surged over the last few years, reflecting its strong fundamentals. The Axis Bank share price outlook looks positive in the short and medium term.
- Short Term Outlook: The short-term outlook for Axis Bank stock is bullish, given the strong performance in the recent quarters. The stock is expected to gain strength going forward, supported by continuing economic growth.
- Medium Term Outlook: In the medium term, experts believe that the stock price can remain range bound due to volatility in the markets. Nevertheless, longer-term investors may find at attractive due to solid fundamentals and strong growth potential.
In conclusion, Axis Bank is an important player in the Indian banking sector, and investors should be well aware of the bank’s share price to make informed decisions. Keeping track of their share price and reaction to news events, like earnings releases and macroeconomic data, can help investors form a sound strategy. With a deep understanding of the stock dynamics, investors can make more informed decisions to help build and protect their portfolios.
Axis Bank Share Price: What to Know
Axis Bank Ltd., India’s third-largest private sector lender, has seen its share price move up and down over the course of the last 12 months. Over this period, the share price has experienced both highs and lows, with some investors seeing it as a good opportunity to invest in this prominent bank. Here’s what investors should know about the Axis Bank share price.
First and foremost, it’s important to note that the Axis Bank share price has fallen significantly in the recent months. On October 2, 2019, the price of the stock was at 764.10 Indian Rupees (INR) per share. As of June 9, 2020, the current price of the stock is 568.60 INR. That’s a drop of nearly 25%.
However, though the share price has dropped, investors should take into consideration that the overall share performance of Axis Bank has not been too bad. As of June 9, 2020, the price of the stock has risen by more than 4% in the last three months.
Investors should also note that the Axis Bank share has a price-earning ratio of 8.7, which means investors can expect to get 8.7 times their investment if the stock is bought at market price. Furthermore, the dividend yield of Axis Bank is currently slightly higher than the S&P 500 average dividend yield.
Finally, investors should consider the outlook for the banking sector in India. The Indian economy is expected to grow in the coming years, which could result in increased profits for the bank. Additionally, the Indian government has recently made several reforms that could potentially benefit the banking sector, including the introduction of Insolvency and Bankruptcy Code (IBC) and the recapitalization of public sector banks.
Overall, the Axis Bank share price is an interesting opportunity for investors. With a falling share price, investors can get a discount on the stock, while at the same time, they can take advantage of the potential upside if the banking sector in India continues to grow. Additionally, the dividend yield and price-earnings ratio of the stock are attractive. As always, investors should perform their own research and seek professional advice where appropriate before making any investment decisions.