IDBI Bank Gains 7.40%: 5 Key Factors Driving This Week’s Momentum

2 February 2026: Modest Start Amid Broader Market Weakness

IDBI Bank began the week with a slight gain of 0.13%, closing at Rs.99.68, while the Sensex declined by 1.03% to 35,814.09. The stock’s resilience contrasted with the broader market’s weakness, supported by steady volume of 1,088,967 shares. This initial stability set the stage for the subsequent rally, highlighting early investor interest despite a challenging market environment.

3 February 2026: Valuation Upgrade Spurs 2.61% Gain

The stock advanced 2.61% to Rs.102.28, outperforming the Sensex’s 2.63% rise to 36,755.96. This movement coincided with a significant valuation reassessment, where IDBI Bank’s price-to-earnings and price-to-book ratios were deemed very attractive relative to peers. The bank’s P/E of 11.14 and PEG ratio of 0.31 underscored its undervaluation, despite a downgrade in its overall Mojo Grade from Buy to Hold. Investors responded positively to these fundamentals, driving the price higher on steady volume.

4 February 2026: Intraday High and Exceptional Volume Signal Strong Momentum

IDBI Bank surged 6.81% to close at Rs.109.25, hitting an intraday high of Rs.108.15 with an 8.46% intraday gain. This rally was accompanied by a remarkable volume spike, with 3.61 crore shares traded, equating to a traded value of approximately ₹390.42 crores. The delivery volume increased by 41.28% compared to the five-day average, indicating genuine accumulation rather than speculative trading. The stock outperformed both the private sector banking sector and the Sensex, which showed only modest gains. Technical indicators confirmed the bullish momentum, with the price trading above all major moving averages.

5 February 2026: Sharp Intraday Decline Amid Profit-Taking and Continued Volume Surge

After three consecutive days of gains, IDBI Bank faced selling pressure on 5 February, closing down 5.77% at Rs.102.95 after touching an intraday low of Rs.101.16. Despite opening higher and reaching an intraday peak of Rs.113.42, the stock reversed sharply, underperforming both its sector and the Sensex, which declined 0.61%. Notably, trading volume remained elevated at 1.20 crore shares, with delivery volume surging 294.7% above the five-day average, signalling sustained investor interest. Technical momentum softened from bullish to mildly bullish, with some indicators suggesting short-term caution amid longer-term strength.

6 February 2026: Strong Outperformance and Volume Surge Amid Market Weakness

Closing the week on a positive note, IDBI Bank rose 3.86% to Rs.106.92, outperforming the Sensex’s 0.10% gain. The stock recorded a total traded volume of 7,278,702 shares, with delivery volumes up 166.94% over the five-day average, signalling robust accumulation. The stock traded above all key moving averages, reinforcing its bullish technical stance. Despite the broader market’s subdued tone, IDBI Bank’s relative strength and elevated liquidity highlight renewed investor confidence. The mid-cap bank’s market capitalisation stands at approximately ₹1,12,438 crore, with a Mojo Score of 61.0 and a Hold rating, reflecting a balanced view amid ongoing sector uncertainties.

Key Takeaways from the Week

Strong Outperformance: IDBI Bank’s 7.40% weekly gain significantly outpaced the Sensex’s 1.51%, reflecting robust investor demand and positive price momentum.

Valuation Appeal: The shift to a very attractive valuation grade, supported by a low P/E of 11.14 and PEG ratio of 0.31, underpinned the stock’s gains despite a Hold rating.

Exceptional Volume and Accumulation: Multiple days of extraordinary volume surges and elevated delivery volumes indicate genuine accumulation by investors, reducing concerns of speculative trading.

Technical Momentum: The stock traded above all major moving averages throughout the week, signalling strong technical support and a bullish trend, although some indicators suggested short-term caution after the midweek correction.

Volatility and Profit-Taking: The sharp intraday decline on 5 February highlighted profit-taking and short-term volatility, reminding investors of the stock’s sensitivity to market fluctuations despite longer-term strength.

Conclusion

IDBI Bank Ltd. demonstrated a compelling combination of fundamental valuation appeal, strong technical momentum, and robust trading volumes during the week of 2–6 February 2026. The stock’s 7.40% gain and consistent outperformance relative to the Sensex underscore its resilience amid mixed market conditions. While the downgrade to a Hold rating advises caution, the sustained accumulation and technical strength suggest that the bank remains a key player within the private sector banking space. Investors should continue to monitor upcoming earnings, sector developments, and broader economic indicators to gauge the sustainability of this momentum.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →