Wed. Sep 20th, 2023
    Indian Overseas Bank Shares Soar to Eight-Year High on Heavy Trading

    Shares of Indian Overseas Bank Ltd. surged to an eight-year high on Monday, driven by heavy trading activity. According to Bloomberg data, there was a significant trade involving 12 lakh shares, or 0.01% equity, at a price of Rs 45.50 per share, as well as another 11 lakh shares, or 0.01% equity, at Rs 45.65 per share. The identities of the buyers and sellers remain unknown at this time.

    Following the trading surge, the bank’s shares experienced a peak increase of 18.99%, reaching their highest level since April 2015. However, the gains were then reduced to a 16.46% increase at 11:15 a.m. The NSE Nifty 50, on the other hand, saw a decline of 0.08% during the same period.

    On a year-to-date basis, the stock has seen an impressive gain of 45.48%. The total traded volume for the day stood at 6.6 times its 30-day average. With a relative strength index of 84.29, there are indications that the stock may currently be overbought.

    Bloomberg data reveals that the sole analyst tracking the company has recommended a ‘sell’ on the stock. Despite this, shares of PSU banking companies, including Indian Overseas Bank, witnessed an upward trend on Monday. The NSE Nifty PSU Bank rose by 3.26%, while the NSE Nifty 50 experienced a decline of 0.07%. All 12 constituents in the index showed gains, with Indian Overseas Bank, UCO Bank, and Punjab & Sind Bank leading the way.

    In summary, Indian Overseas Bank shares soared to an eight-year high due to a large trade, experiencing a significant increase before tapering off. While the stock has overall seen strong gains this year, some caution may be warranted due to indications of being overbought. Nevertheless, the broader PSU banking sector showed strength, with positive performances across all constituent companies.

    Sources: Bloomberg data.