Axis Bank hits 7-week low as shares slide 4.7%, market cap dips below ₹4 lakh crore

The Axis Bank share price fell 4.7% to ₹1,252.80 apiece on Wednesday, March 11, closing at a seven-week low as selling pressure returned to the country’s fourth-largest private sector lender. The stock’s market capitalisation slipped below ₹4 lakh crore on the day, Mint reported.

The Axis Bank share price has been among the most volatile in the banking pack this quarter, swinging from sharp gains to steep declines within days. The latest drop came amid a broader sell-off in lenders — HDFC Bank, ICICI Bank and Kotak Mahindra Bank also fell in the run-up to Q2 earnings, even as pre-quarter releases showed healthy loan and deposit growth boosted by FCNR-B inflows, Business Today reported.

Seven-week low as shares slide 4.7%

Wednesday’s slide marked the latest leg in the choppy stretch. Earlier this month, the stock rallied 3.16% and approached its 200-day moving average — a key technical test that traders are now watching, MarketsMojo noted.

The moves have been sharp in both directions. After the bank posted Q3 results, the Axis Bank share price jumped nearly 4% in early trade, climbing 3.88% to ₹1,309 apiece on the BSE, Mint reported. In another instance, the stock surged almost 3% after Q2 numbers, though net profit for that quarter fell 26% year-on-year to ₹5,090 crore, the Financial Express reported.

Profit jump didn’t stop the fall

The disconnect between earnings and the stock price has been striking. In Q2 FY27, Axis Bank’s net profit rose 38% from a year earlier — yet the share price fell up to 5% after the results, IndiaInfoline reported. Business Standard put the profit growth at 39% and said brokerages including MOFSL attributed a slight earnings miss to elevated operating expenses.

“The strong NII growth and lower-than-expected provisions were offset by elevated opex and softer treasury income,” MOFSL said. Analysts also flagged concerns over margin and fee income growth, IndiaInfoline added.

The bank’s asset quality metrics were part of the mixed picture, with provisions coming in lower than expected, a factor that partially cushioned the impact of higher costs.

Analysts stay bullish despite the miss

Sell-side sentiment remains overwhelmingly positive despite the stock’s slide. None of the 52 analysts covering the bank has a “sell” rating; 49 have a “buy” and three have a “hold”, CNBC-TV18 reported. Consensus price estimates imply upside of up to 34% from current levels.

That optimism coexists with caution on the ground. The market’s reaction to Q2 showed investors penalising the bank for its cost structure even as core earnings stayed strong, and the subsequent bounce showed how quickly sentiment can flip.

The level to watch: 200-day moving average

Traders are focused on whether the stock can reclaim its 200-day moving average, the level it approached after the 3.16% rally. A decisive break above it could open the door to further gains; a rejection risks another leg down toward recent lows, MarketsMojo suggested.

Live tracking on the BSE and NSE shows daily volumes and price updates being watched closely by retail and institutional investors alike, with the Economic Times’ live blog updating last traded prices through the session.

Investors are left with two competing signals: a sell-side that is almost uniformly bullish and a price chart that keeps printing fresh lows. Which one prevails may depend on the bank’s next quarterly results and whether operating costs ease.