Institutional buying plays a crucial role in shaping the direction of the Indian stock market. It indicates confidence in a particular stock or sector, as institutions such as mutual funds, insurance companies, and foreign investors bring significant capital to the market. Their purchases often signal a positive outlook on the economy or specific companies, influencing market sentiment and boosting investor confidence.
Opportunities for Retail Investors
The actions of institutional investors provide valuable insights to retail investors. Institutions buying large stock quantities can indicate strong growth potential or a solid business model. Retail investors often track institutional buying to identify trends and gain access to quality stocks. This allows them to align their investment strategies with more experienced market participants, enhancing their chances of making profitable decisions.
Share Price
The shares of Axis Bank India Limited are currently trading at Rs. 1,069.7 down by 0.49% from its previous close of Rs. 1,075. The stock also touched an intraday high of Rs. 1,074.95.
Recent Updates
Based on the regulatory filing dated January 6, 2025, HDFC Mutual Fund has increased its stake in Axis Bank Ltd. The mutual fund’s aggregate shareholding in the bank reached 5.02% of the paid-up equity share capital, amounting to Rs. 6,106.43 crore through ownership of 3,09,51,71,531 equity shares of Rs. 2 each.
According to the detailed breakdown provided to BSE Limited and National Stock Exchange of India Limited, HDFC MF acquired 14,89,316 shares representing a 0.05% stake in this transaction. This increased their total holding from 15,38,45,705 shares (4.97%) before the acquisition to 15,53,35,021 shares (5.02%) after the purchase, crossing the 5% threshold that requires regulatory disclosure under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011.
Financial Outlook
Axis Bank had demonstrated robust financial performance, with a 9% rise in Net Interest Income (NII), reaching ₹12,234 crore, and a healthy Net Interest Margin (NIM) of 3.99%. The bank’s fee income grew by 11% year-on-year (YOY), largely driven by retail fees, which account for 92% of the total fees.
Deposits saw a 14% YOY increase, bolstered by a 21% rise in term deposits, although CASA deposits grew at a slower pace of 4%. On the advances side, net advances grew by 11% YOY, with retail loans increasing by 15% YOY and SME loans by 16%.
Additionally, Axis Bank secured the top position in the UPI Payer Payment Service Provider sector, commanding a 31% market share, and showcasing solid growth across its business segments.
Brokerage Target
Prabhudas Liladher has a BUY rating on the stock with a target price of Rs. 1,530 representing an upside potential of 44% from the current market price of Rs. 1069.7. The brokerage lowered its core PAT projections for FY25/26E by 1.7% and 4.3%, respectively, due to slower loan growth.
However, it kept the multiple at 2.2x and raised the target price (TP) to ₹1,530 from ₹1,425, following a roll-forward to the September 2026 ABV. The ‘BUY’ recommendation was upheld. Furthermore, the brokerage upgraded Engineers India (EIL) from ‘ACCUMULATE’ to ‘BUY’ due to the recent decline in its stock price. The SoTP-based target price of ₹250 remained unchanged, with the Consultancy and Turnkey segments valued at P/E ratios of 25x and 10x for FY26E.
Written By: Dipangshu Kundu
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