IndusInd Bank shares gain 2% as Nomura maintains its bullish stance

IndusInd Bank shares rallied 2 percent intraday on July 1 after Japanese brokerage Nomura said it expects the stock to return 26 percent on growth in Bharat Financial Inclusion.

"We maintain buy rating on the stock with a target price at Rs 1,775 per share," the brokerage said, adding past high multiples are unlikely to return soon but current multiples are reasonable for 19 percent return on equity.

Nomura said Bharat Financial Inclusion's business is certainly more profitable within a bank but it cut earnings estimate by 3-4 percent to factor in lower fees.

The stock was quoting at Rs 1,422.15, up Rs 12.05, or 0.85 percent on the BSE at 1021 hours IST.