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Informist, Monday, Sept. 29, 2025

By Anjana Therese Antony

MUMBAI – Traders placed bullish bets on the derivatives segment of IndusInd Bank Monday after foreign brokerage house Morgan Stanley upgraded the stock's rating and target price. The brokerage said the bank will end the current financial year with a clean balance sheet and strong coverage ratios under the new management. Premiums on out-of-the-money call options of IndusInd Bank, which are 4-12% higher than the spot level, rose while those on put contracts declined. 

Morgan Stanley expects the bank to exit 2025-26 (Apr-Mar) with a clean balance sheet with the new management in place, which will also help normalise credit costs. The brokerage house upgraded the stock rating to 'equal-weight' from 'underweight' and raised the target price to INR 785 from INR 750. It also expects the lender's net interest margins to improve further in FY27 due to the favourable asset-liability mix amid falling interest rates. 

In the options chain of IndusInd Bank, premiums on INR 740-INR 850 call contracts expiring on Oct. 28 rose 47-50% while those on put strikes INR 720-INR 660 declined 40-50%. The maximum addition of open interest was at INR 800 call and INR 730 put and the highest concentration of open interest was at INR 750 call and INR 700 put. The stock is likely to find support at INR 710-INR 700 and resistance at INR 750-INR 780, a derivatives analyst at a domestic broking firm said. Traders also added long bets in the October and November series of IndusInd Bank, which closed over 3% higher each. Open interest in the October contract rose 53% and that in the November series increased 1%. 

The optimism was also reflected in the stock price on Monday, which closed 1.5% higher at INR 723.40 on the National Stock Exchange. The bank's shares rose despite news reports that the former chief financial officer Gobind Jain has alleged serious wrongdoings by the bank over many years. NDTV Profit reported that Jain has alleged he was made to rewrite his resignation to hide crucial evidence of improper accounting. He had submitted his resignation four times in 2024, starting from June, the news report said. 

Last week, the bank appointed Viral Damania as the chief financial officer. Effective Tuesday, shares of IndusInd Bank will no longer be part of the Nifty 50 and Nifty 100, as announced during NSE Indices' semi-annual review in August. The stock has seen a major correction since March, following the bank's announcement that an internal review had found discrepancies in the accounts of its derivative portfolio. The stock is down 20% from the level before the bank reported these discrepancies. 

--Nifty 50 September closed at 24695.00, up 5.10 points; 60.10-point premium to the spot index

--Nifty 50 October closed at 24825.00, up 13.00 points; 190.10-point premium to the spot index

--Nifty 50 November closed at 24963.10, up 16.80 points; 328.20-point premium to the spot index

HDFC Bank, ICICI Bank, Reliance Industries, InterGlobe Aviation, Infosys, State Bank of India, Axis Bank, Kotak Mahindra Bank, Hero MotoCorp, Bharti Airtel, Larsen & Toubro, Tata Consultancy Services, Bajaj Finance, Sammaan Capital, and Maruti Suzuki India were the most active underlying stocks Monday.  End 

Edited by Saji George Titus

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