AU Small spikes up

AU Small Finance Bank is right there as the top gainer on the BSE since the opening bell; the stock opened 10% higher at Rs.638.45 and rose further 16% to hit an intraday high at Rs.671.85. There has been a huge jump in volumes; from a 2-week average of 37k shares, today morning alone volumes rose to 19 lakh shares. Its 52-week high stands at Rs.732.90.

The market is happy with the reappointment of MD & CEO, Sanjay Agarwal for three more years, as this means the bank’s performance will remain stable, removing the overhang of uncertainty.

The market now expects that the next trigger will be the application with RBI for the universal banking license, before which its AD-1 license could get approved in the coming months.