The Axis Bank share price dipped 2.54% today, slipping below the ₹1,170 mark despite reporting a solid net income of ₹280.6 billion for FY2025. This decline has raised eyebrows among investors and traders alike, sparking a debate: Is this a temporary dip or a strategic buying opportunity?
Let’s explore what this price
movement means, what’s driving it, and whether now is the right time to
consider adding Axis Bank to your investment portfolio.
Axis Bank Share Price Today: Volatility Grips the Market
As of 11:49 AM on July 1, 2025,
Axis Bank share price was trading at ₹1,168.70, marking an intraday
loss of 2.54% from the previous close of ₹1,199.20. Interestingly, the day
started strong with an opening price of ₹1,202.00. But despite an initial upward
push, the stock hit an intraday low of ₹1,167.00.
This movement suggests investors are
uncertain amid broader market volatility, likely reacting to mixed economic
signals and sectoral shifts.
Technical Overview: Caution in the Air
Axis Bank’s trading volume for the
day so far stood at 4.07 million shares, which is significantly below
the 20-day average of 7.5 million shares. This shows that traders are taking
a cautious approach.
- Total Traded Value:
₹47,614.79 lakhs (₹476 crore approx)
- Volume Weighted Average Price (VWAP): ₹1,179.60
- Support Level (S2):
₹1,166.53
- Resistance Levels:
- R1: ₹1,225.77
- R2: ₹1,252.33
- R3: ₹1,268.67
The current price is just above the
critical support level of ₹1,166.53. A break below this could invite more
selling pressure.
Circuit limits for the day:
- Lower Circuit:
₹1,079.30
- Upper Circuit:
₹1,319.10
So far, the share remains within a
safe range, but volatility could test these boundaries.
Axis Bank Financial Snapshot FY2025: Strong Performance, Lingering Concerns
Axis Bank reported a robust net
income of ₹280.6 billion, a 6.3% YoY growth, along with a healthy earnings
per share (EPS) of ₹90.72. Full-year revenue stood at ₹684.9 billion,
growing by 8% year-over-year.
Other key financials:
- Market Cap:
₹362,342 crore
- Book Value Per Share:
₹552.70
- P/B Ratio:
2.12
- TTM EPS:
₹90.47
- P/E Ratio:
12.91 (vs sector average of 20.64)
These numbers indicate that Axis
Bank is fundamentally strong and even undervalued compared to its
peers, making it attractive for value investors.
Dividend Update: Modest but Steady
Axis Bank has declared a final
dividend of ₹1 per share for FY2025. The ex-dividend date is July 4,
2025. While the yield may not be impressive, the bank’s commitment to
returning capital to shareholders even during cautious economic periods is a
positive sign.
Weak Loan and Deposit Growth: A Cause for Concern?
Despite solid earnings, Axis Bank’s loan
and deposit growth lag behind industry standards:
- Loan Growth:
- 2.6% QoQ
- 7.8% YoY
- Deposit Growth:
- 7% QoQ
- 10% YoY
The retail loan book slippages
are also a concern, accounting for nearly 90% of total slippages. This
has triggered some caution among institutional investors who are closely
watching the bank’s asset quality metrics.
Sectoral Shifts and RBI’s Impact
Recently, the Reserve Bank of
India (RBI) slashed the repo rate to 5.5%, prompting banks including
Axis to lower fixed deposit interest rates. Additionally, ATM
withdrawal charges increased to ₹23 per transaction (starting July 1),
adding to the cost burden for customers.
These regulatory changes could impact
margins and customer behavior, especially in the short term.
Options Data Reflects Market Hesitancy
Derivatives data for Axis Bank also
suggest caution. There has been a rise in put option contracts at the ₹1,180
strike, a bearish indicator that investors are hedging against potential
downside risks.
Analyst Ratings: Still Bullish Despite the Dip
According to the latest data from
brokerage houses:
- 63% analysts
recommend a “Buy”
- 21% suggest “Outperform”
- 16% recommend “Hold”
- 0% say “Sell” or “Underperform”
While analysts remain largely
bullish, some short-term technical indicators have triggered sell
signals, especially with the price now hovering near support levels.
What Does This Mean for Investors?
Axis Bank share price falling below
₹1,170 might feel like a setback to some. But for long-term investors, this
could be a strategic entry point. Here's why:
Positives:
- Strong FY25 results
- Robust market capitalization
- Consistent dividend
- Undervalued on P/E basis
- Bullish analyst sentiment
Watchouts:
- Sluggish loan/deposit growth
- Elevated retail slippages
- Weak trading volumes
- Sector-wide pressure post RBI rate cut
If you’re an investor with a long-term
horizon, this dip might be the ideal moment to accumulate Axis Bank shares
at a discount. However, those with short-term goals should wait for
signs of stabilization or reversal before entering.
Short-Term Outlook vs Long-Term Potential
| Factor | Short-Term Outlook | Long-Term Potential |
|---|---|---|
| Share Price Trend | Volatile, Near Support Levels | Possible Upside from Recovery |
| Trading Volume | Below Average | Likely to Improve Post-Q2 |
| Analyst Ratings | Mixed Signals | Strong Buy Consensus |
| Sectoral Tailwinds | Uncertain | Favourable as economy strengthens |
| Financial Fundamentals | Stable | Solid Base for Growth |
Conclusion: Is It the Right Time to Buy?
The Axis Bank share price drop
below ₹1,170 may seem concerning at first glance, but digging deeper reveals a
much more nuanced picture. With solid financials, a fair valuation, and a
largely positive outlook from market experts, the dip could present an
excellent buy-on-dip opportunity for savvy investors.
Still, asset quality concerns and
slower growth in core banking areas must be kept in mind. Whether you’re a
cautious trader or a long-term investor, Axis Bank is a stock to watch closely
in the coming weeks.
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