Why is Federal Bank falling/rising?

Sep 02 2025 09:36 PM IST
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As of 02-Sep, Federal Bank Ltd is priced at 193.55, showing a slight increase and a total return of 0.97% over the last two days. Despite recent gains, the stock is trading below moving averages and has underperformed over the past month compared to the Sensex, indicating potential momentum weakness.
As of 02-Sep, Federal Bank Ltd is currently priced at 193.55, reflecting a slight increase of 0.35 (0.18%). The stock has been gaining for the last two days, with a total return of 0.97% during this period, and it has outperformed its sector by 0.95%. However, it is trading below its moving averages across various time frames, indicating a potential weakness in momentum. Despite a recent decline in delivery volume by 18.02% against the 5-day average, the bank maintains strong lending practices with a low Gross NPA ratio of 1.91% and a robust long-term growth rate in net profits at 20.15% CAGR. Additionally, high institutional holdings at 75.04% suggest confidence from larger investors, which may support the stock's stability.

In the broader market context, Federal Bank's short-term performance over the past week shows a gain of 0.65%, contrasting with a decline of 0.78% in the Sensex, indicating that the stock is performing relatively well against the benchmark. However, over the past month, Federal Bank has underperformed with a return of -1.22% compared to the Sensex's -0.55%. This suggests that while the stock is experiencing a minor uptick recently, its longer-term performance remains challenged, particularly in comparison to the overall market trends.
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