Shares of IndusInd Bank on Monday jumped over 2 per cent in morning trade on the bourses after the Reserve Bank of India (RBI) on Friday removed the lender from its caution list.
RBI in a release on September 4 said it has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender.
“The restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect,” RBI said adding that the shares of IndusInd Bank can now be purchased through the primary market and stock exchanges.
Following which, shares of the company opened on a bullish note, in an otherwise volatile market, and surged 2.37 per cent to an early high of Rs 860.
Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 850, then jumped 2.23 per cent to an early high of Rs 859.60.
The surge in the counter assumes significance as the broader market closed in the negative territory. The share price of IndusInd Bank closed 2.25 per cent down at Rs 821.15.
The BSE Sensex and NSE Nifty closed over 1 per cent down at 24,894 and 7,559.
Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.