Bear trap builds as RBI soothes IndusInd fears

IndusInd Bank's beaten-down shares may be prime for a rebound, for now, as the central bank's weekend assurance revives investor confidence, sparking a scramble for its shares.

- Ram Sahgal

MUMBAI:

The bears who stormed the bank's derivatives counter last week may find themselves trapped even as wealthy investors move in, analysts said. As share price rises on fresh buying, bears may rush to cover their short bets, triggering a rally as the market opens on Monday.

On Saturday, the Reserve Bank of India (RBI) said IndusInd Bank's financial health remains "stable" and that it was "closely monitoring" the same. Analysts said after the RBI statement they expect the bank's cash counter to see more bargain hunting by wealthy clients and family offices and the derivatives counter to witness added short-covering by punters.