Kotak Mahindra Bank gained 3.11% to Rs 925.20 at 14:31 IST on BSE after a foreign brokerage upgraded the stock to buy from hold and increased the price target.
Meanwhile, the BSE Sensex was down 168.43 points, or 0.66%, to 25,415.26
On BSE, so far 1 lakh shares were traded in the counter, compared with an average volume of 4.81 lakh shares in the past one quarter.
The stock hit a high of Rs 931.10 and a low of Rs 902 so far during the day. The stock hit a record high of Rs 950 on 16 May 2014. The stock hit a 52-week low of Rs 588 on 28 August 2013.
The stock had underperformed the market over the past one month till 10 June 2014, rising 5.34% compared with the Sensex's 11.26% rise. The scrip, however, outperformed the market in past one quarter, surging 19.63% as against Sensex's 16.64% rise.
The large-cap private sector bank has an equity capital of Rs 385.18 crore. Face value per share is Rs 5.
Kotak Mahindra Bank edged higher after a foreign brokerage upgraded the stock to buy from hold and increased the price target to Rs 1,080 from earlier Rs 770, after raising the bank's earnings estimates for the year ending 31 March 2015 (FY 2014) and for the year ending 31 March 2016 (FY 2016). High operating leverage in banking, broking and other businesses of the bank is driving strong earnings for the bank, the brokerage has reportedly said in a note.
On 30 May 2014, Kotak Trustee Company, a promoter group entity of the Kotak Mahindra Bank, sold 2.49 crore shares, or 3.24% equity, of the bank. After the sale of the shares, the shareholding of promoters in the bank has declined to 40.33%. The sale of shares by the promoters was undertaken pursuant to Reserve Bank of India's (RBI) requirement to reduce promoter shareholding in the bank as communicated on 26 May 2014, Kotak Mahindra Bank said.
As on 31 March 2014, promoters held 43.58% stake in Kotak Mahindra Bank. Among the promoter group, Uday Suresh Kotak held the largest stake of 39.76%.
Kotak Mahindra Bank's net profit fell 6.7% to Rs 407.18 crore on 0.7% decline in total income to Rs 2552.96 crore in Q4 March 2014 over Q4 March 2013.
Kotak Mahindra group is one of India's leading financial services conglomerates.
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