Morgan Stanley downgraded India's Axis Bank to "underweight" from "equal weight" and cut its target price on the stock to Rs. 800 from Rs. 900, citing rising impairments.
The investment bank expects the impaired loan formation of Axis Bank to rise to 4% of total loans in FY14.
Axis Bank shares fell 2.7% to 951.51 rupees by 9.35am.