ICICI Bank Receives BUY Rating from Nomura

ICICI Bank Receives BUY Rating from Nomura

ICICI Bank stock can offer decent returns over medium to long term as the Indian banking sector is about to witness strong growth and ICICI Bank is having strong hold in the segment. Global brokerage Nomura believes that Indian banking sector is on the cusp of a multi-year credit cycle and we can expect Indian banks to 17 percent return of equity over the next two years. For private banks, Nomura is expecting credit growth of 18 percent. Indian banks have been proactive in dealing with non-performing assets over the last few years and we can say that the worst is behind us for Indian banking sector. Even public sector banks have cleared their bad loans in the recent years.

Nomura has maintained BUY Rating for ICICI Bank with price target of Rs 1120. Among other banks in private sector on Nomura’s radar are IndusInd Bank with target of Rs 1600 and Axis Bank with price target of Rs 1160.

With Retail and MSME sectors registering robust growth, banks are expected to showcase strong performance in the coming quarter. Credit growth can be strong for private and public sector banks.

In today’s session, ICICI Bank was trading at Rs 931, with gain of 0.6 percent. The stock has faced resistance in Rs 950 – 960 range and if it crosses these levels, we can expect fresh buying. Indian markets are trading at their all-time highs and if we continue with the current rally, ICICI Bank could see higher levels in coming trading sessions.

Brokerage house Motilal Oswal also has BUY Rating for ICICI Bank, IndusInd Bank and IDFC First Bank.

Currently, ICICI Bank has 34 BUY Ratings, 2 Neutral and 0 Sell Ratings.

For short term, Sacchitanand Uttekar of Tradebulls has suggested BUY Call for ICICI Bank, as reported by TopNews earlier today.