Financial Daily from THE HINDU group of publications
Wednesday, Oct 08, 2003
Financial Daily from THE HINDU group of publications Wednesday, Oct 08, 2003 |
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Markets
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Stock Markets Money & Banking - Stocks FII interest perks up ICICI Bank Jayanta Mallick
Kolkata , Oct. 7 THE ICICI Bank stock shot up today on reported FII buying. The stock closed 6.5 per cent up at Rs 227.60 (Rs 212), after touching the day's peak at Rs 231.35, a 52-week high, on the BSE with a traded quantity of 13.86 lakh shares (5.62 lakh shares). On the NSE, it attracted a volume of 30.44 lakh shares (12.68 lakh shares), much higher than the September daily average of 15.46 lakh shares. According to Mr Ketan Thacker of Anagram Stockbroking, the trigger for the stock was yesterday's 9.1 per cent jump in ICICI Bank ADR, a year high at the NYSE. The NYSE spurt followed the hybridinvestor.com President, Mr Scott Bleier's recommendation of the stock on a morning TV show. Merrill Lynch also said that the bank's retail loans could hit 53 per cent of the loans in FY-05. Some US analysts were said to be bullish about its profit margins in the coming quarters. According to Mr Manish Shah of Motilal Oswal Securities, the stock is looking bright on the charts but fundamentally appears to be overvalued. "The market performance of the counter has been exceptional for accumulation by certain FIIs. The net earnings of the bank are likely to grow at 7 per cent in 2003-04 because of lower trading growth and higher provisions. Also NPA is a worrying factor. However, this has not dampened the enthusiasm", he observed. Incidentally, hearing for the Mardia Chemicals case is to come up on Thursday in the Supreme Court. The Attorney General is to place the Centre's view on amending certain provisions regarding issue of show-cause notice before a takeover under the new securitisation law. However, ICICI Bank, which has already taken over the Mardia plant, is likely to plead for protection of its rights and permission for sale of the plant. This means, according to sources, future of the bank's NPAs will be in limbo for some more time.
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