Mumbai: Shares of Axis Bank on Friday fell 5.8%, the steepest fall in 11 months, after news reports indicated that the government may start selling some of its stake in the lender.
At the end of the June quarter, the government owned 11.51% in Axis via the Specified Undertaking of Unit Trust of India, or SUUTI. The government is currently hiring merchant bankers for divesting stakes held under SUUTI.
On Friday, Axis Bank closed at Rs.557.40—a level last seen on 4 August, down 5.84%, the maximum fall since 10 October 2015. The benchmark Sensex Index fell 0.4% to close at 28,668.22 points.
During the day, the stock touched a low of Rs.556.10 and fell as much as 6.06%, the most since 24 June. The stock fell in four out of the last five trading sessions and is down 7.4% in this period.
So far this year, it has risen 24%.
Of the analysts covering the stock, 29 have a “buy” rating, 18 a a “hold” rating and 10 a “sell” rating, shows Bloomberg data.