Axis Bank Shares Plunge: Why Did Investors Dump the Stock?

• Axis Bank's share price fell sharply despite good results and controlled asset quality.
• The main reason was the management's revised outlook on Net Interest Margin (NIM).
• Management stated NIM improvement would be gradual ("C-shaped recovery") over 15-18 months, disappointing market expectations for a quicker rebound.
• Already high valuation and a "Neutral" rating from Citi, with a target price near current levels, also contributed to profit-taking.
• The decline reflects a slower earnings growth expectation, not a fundamental issue with the bank.

Why It Matters: Axis Bank's share drop signals slower NIM recovery, not fundamental weakness; market expects gradual growth.