ICICI Bank stock hits new record high; is there more rally ahead?
ICICI Bank, one of the largest private sector banks in India, gained 2.28% in today's trade, setting a new record high of ₹1,013.85 apiece. The stock's previous peak was recorded in July 2023 at ₹1,008.70. According to the latest data from BSE, ICICI Bank is currently ranked as the fourth most valued Indian listed firm.
Taking the stock's all-time high of ₹1,013.85 into account, the bank's m-cap reached ₹7,08,062 crore. Over the last six trading sessions, the stock jumped 7.38%, and year to date, it has yielded a return of 12.81%, outperforming the Nifty Bank index, which gained 8.95% in the same period. Also Read: Nifty Bank hits new record high as market surges sharply; ICICI Bank top gainer The recent strong performance of the BJP in state elections has instilled confidence of political stability for 2024.
This positive outlook bodes well for India's macroeconomic and policy momentum, especially considering the country's leading growth among major economies in terms of both GDP and corporate earnings. This in turn could boost financial and banking activities going forward, according to a recent note from domestic brokerage firm Motilal Oswal. Also Read: Stock markets optimistic post state poll results.
Are the valuations justified? "We like ICICI Bank as it is making progress towards a sustainable growth which is evident from its strong contingency buffers, robust underwriting and risk-monitoring mechanisms," the brokerage said. According to Motilal Oswal, the bank maintains an impressive profile with one of the highest proportions of retail deposits, a robust CASA mix of 43%, and a best-in-class Provision Coverage Ratio (PCR) of 83%. In light of these factors, the brokerage retains its 'buy' call on the stock with a
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