IndusInd Bank Shares Rise 6% After Nomura Upgrades Stock To 'Buy', Sees 25% Upside Potential
Shares of IndusInd Bank surged 6% to Rs 855.20 on the BSE during intraday trade on Wednesday amid strong volumes
IndusInd Bank Share: Shares of IndusInd Bank surged 6% to Rs 855.20 on the BSE during intraday trade on Wednesday amid strong volumes, bucking the broader market's weakness. The rally followed a bullish call from global brokerage Nomura, which upgraded the stock to 'Buy' and raised the price target sharply to Rs 1,050 from Rs 700, implying a 25% upside from current levels.
The stock touched a recent high of Rs 857 on June 10, 2025, and has now rebounded nearly 41% from its 52-week low of Rs 605.40, hit on March 12, 2025. At 10:37 AM, shares were trading 4.6% higher at Rs 846.20, while the BSE Sensex was marginally down by 0.04%. Trading volumes on the counter jumped over threefold, with nearly 10 million shares traded on the NSE and BSE combined.
What's Driving the Rally?
According to Nomura, IndusInd Bank's renewed focus on governance and leadership is a major positive. The board's commitment to starting FY26F with a clean slate, alongside the ongoing CEO search and efforts to strengthen internal controls, have instilled confidence. The Reserve Bank of India's (RBI) supportive stance and potential nod to increase promoter stake could also help ease investor concerns.
Despite recent challenges—including governance issues and accounting discrepancies—Nomura believes the bank has taken corrective steps. A one-time clean-up of its books and proactive provisioning for legacy issues signals a reset for the lender.
' Watch Negative' following the resignations of two top executives and an internal audit into microfinance irregularities. This came after a March 2025 disclosure of discrepancies in derivative accounting, which, along with subsequent revelations in the FY25 annual results, had impacted profitability.
The RBI has since asked the bank to submit CEO appointment proposals by June 30, 2025, following the exits of Sumant Kathpalia (Managing Director & CEO) and Arun Khurana (Whole-time Director & Deputy CEO).
Overall, analysts say that while legacy issues weighed on the bank's past performance, the current restructuring and external endorsements like Nomura's upgrade have renewed optimism in IndusInd Bank's turnaround story.
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