Why is Federal Bank falling/rising?

Aug 08 2025 09:39 PM IST
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As of 08-Aug, Federal Bank Ltd's stock price is declining at 196.15, down 1.18%, and trading below key moving averages with reduced investor participation. Despite a recent 8.26% monthly drop, the bank shows strong lending practices and a solid long-term growth trajectory.
As of 08-Aug, Federal Bank Ltd is experiencing a decline in its stock price, currently at 196.15, which represents a decrease of 2.35 or 1.18%. The stock has fallen after two consecutive days of gains and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, there has been a notable drop in investor participation, with delivery volume falling by 43.75% compared to the 5-day average. Over the past month, the stock has decreased by 8.26%, while it has shown a modest increase of 1.21% over the past year, outperforming the BSE500 in the last three annual periods. Despite these recent declines, the company maintains strong lending practices with a low Gross NPA ratio of 1.91% and a robust long-term growth trajectory, evidenced by a 20.15% CAGR in net profits.

In the broader market context, Federal Bank's short-term performance has been relatively stable compared to the benchmark, as it has gained 0.10% over the past week while the Sensex has decreased by 0.92%. This indicates that the stock is holding up better than the overall market in the short term. However, the stock's year-to-date performance shows a decline of 1.88%, contrasting with the Sensex's gain of 2.20%, highlighting a divergence in performance. The high institutional holdings at 75.04% suggest that informed investors are backing the stock, which could provide some stability despite the recent price drop.
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