Axis Bank slumped 5.34% to Rs 999.35 at 10:05 IST on BSE, with the stock extending Friday's 8.23% slump triggered after MSCI said it would exclude the banking stock from its standard and large cap indices with effect from 2 September 2013.
Meanwhile, the BSE Sensex was down 243.32 points, or 1.31%, to 18,354.86.
On BSE, 88,166 shares were traded in the counter compared with average volume of 1.78 lakh shares in the past one quarter.
The stock hit a high of Rs 1,043 and a low of Rs 995 so far during the day. The stock hit a 52-week high of Rs 1,549 on 20 May 2013. It hit a 52-week low of Rs 926.90 on 5 September 2012.
The stock had underperformed the market over the past one month till 16 August 2013, falling 14.3% compared with the Sensex's 6.31% decline. The scrip also underperformed the market in past one quarter, falling 31.02% as against Sensex's 8.15% fall.
The large-cap private sector bank has an equity capital of Rs 469.02 crore. Face value per share is Rs 10.
Axis Bank slumped 13.1% in two trading days from a recent low of Rs 1,150.05 on 14 August 2013 after MSCI said it would exclude the banking stock from its standard and large cap indices with effect from 2 September 2013. MSCI made the announcement on Thursday, 15 August 2013, when the Indian stock market was shut for a public holiday. The stock lost 8.23% to Rs 1,055.40 on Friday, 16 August 2013.
MSCI Barra is a leading provider of benchmark indices and risk management analytics products. Many global mutual funds are linked with MSCI indices. Hence, deletion of a stock from the MSCI index leads to outflow of passive funds that use the MSCI index to benchmark their portfolios.
Meanwhile, shares of Axis Bank also came under pressure after the Reserve Bank of India (RBI) on Wednesday, 14 August 2013, said that overseas investors will not be allowed to purchase additional shares in the bank given the foreign shareholding limit of 49% in the stock has been breached.
Axis Bank's net profit jumped 22.14% to Rs 1408.93 crore on 15.87% increase in total income to Rs 9059.12 crore in Q1 June 2013 over Q1 June 2012.
Axis Bank is the third largest private sector bank in India. It has a large footprint of 1947 domestic branches (including extension counters) and 11,245 ATMs spread across the country as on 31 March 2013. The bank also has overseas offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.
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