Why ICICI Bank shares rallied over 5% to hit a new lifetime high—explained with 5 key reasons

The shares of the nation's largest slope surged by 5.1% during intraday commercialized and touched a historical highest of ₹1,163 per stock earlier finishing the commercialized with a summation of 4.72%. Impressively, the shares person sustained a bullish inclination for the past six consecutive months, including April, resulting successful a notable summation of 26.3%.

This outstanding show has propelled the bank's marketplace capitalisation to surpass ₹8 lakh crore for the archetypal clip successful today's trade, making it the 4th listed institution to execute this milestone.

Taking the stock's all-time precocious terms into account, the bank's m-cap touched ₹8.16 lakh crore.

Moreover, today's surge successful slope shares propelled the Nifty Bank to scope a caller all-time high, accounting for 80% of the wide summation successful the scale for the day.

Also Read: HDFC Bank vs ICICI Bank vs Axis Bank: Which banal to bargain aft Q4 results?

The pursuing are 5 cardinal factors wherefore slope shares skyrocketed successful today's trade: 

Also Read: Axis Bank stock terms hits beingness precocious aft Q4 results 2024. More steam left?

In-line performance: The slope showcased an in-line show successful the 4th fourth of fiscal twelvemonth 2024 (4QFY24), signaling a 17% year-on-year (YoY) summation successful nett earnings. This maturation was fueled by a beardown enlargement successful nett involvement income (NII), disciplined absorption of operating expenses, and prudent handling of recognition costs.

Notably, the slope achieved an annualised Return connected Assets (ROA) of 2.4% and a Return connected Equity (RoE) of 18.5%. For the afloat fiscal twelvemonth FY24, nett aft taxation (PAT) surged to ₹408.9 billion, representing a notable 28.2% YoY increase.

Additionally, the bank's nett involvement borderline (NIM) witnessed an 8% YoY growth, supported by a robust 16.2% YoY (2.7% quarter-on-quarter, QoQ) enlargement successful loans. However, NIMs experienced a flimsy moderation by 3 ground points (bp) QoQ, settling astatine 4.40%.

Also Read: ICICI Bank: Brokerages stay bullish connected banal station Q4 earnings; rise people price

Regarding concern expansion, advances grew by 16.2% YoY (2.7% QoQ), chiefly driven by maturation successful retail, concern banking (BB), and tiny and medium-sized endeavor (SME) loans. Within the retail segment, notable maturation was observed successful housing, rural, and unsecured recognition (personal loans and recognition cards), arsenic highlighted by Motilal Oswal.

Positive outlook: After reporting in-line performance, brokerage firms person expressed optimism regarding the stock's aboriginal performance. JM Financial has affirmed its 'Buy' standing and a people terms of ₹1,330.

Systematix Institutional Equities besides maintains a 'Buy' standing and has raised its people terms to ₹1,275 per share. Antique Stock Broking, too, has retained its 'Buy' standing and revised the people terms upwards to ₹1,300 per share. 

Similarly, CLSA has sustained its 'Buy' rating, elevating the people terms to ₹1,350 per share. JP Morgan remains 'Overweight' connected ICICI Bank with a people terms of Rs1,300, portion Nomura has maintained its 'Buy' standing with a people terms of Rs1,335 per share.

Global optimism: In summation to company-specific factors, affirmative planetary cues person importantly buoyed capitalist sentiment, propelling marketplace indices upwards. Notably, U.S. markets concluded past week with their astir robust show successful 2024. 

This surge was fueled by the stellar net of tech giants specified arsenic Alphabet and Microsoft. The S&P and Nasdaq indices recorded their champion play gains since November.

Encouraging developments successful the Middle East: The surge successful buying enactment finds further enactment from caller affirmative developments unfolding successful the Middle East. According to a study by Bloomberg, U.S. Secretary of State Antony Blinken is intensifying efforts to broker a truce successful Gaza. 

Also Read: OPEC cuts and geopolitical tensions propel Brent crude up by implicit 13% successful 2024

Scheduled meetings successful the Middle East connected Monday purpose to supply a last accidental to transportation Israel to halt an impending onslaught connected Rafah. Following this development, crude lipid prices during Monday's commercialized tumbled by 0.8%. 

Market defies complaint chopped concerns: The marketplace defies the probability of a complaint chopped by the U.S. Fed being postponed to the 2nd fractional of this year, fixed the slowing maturation successful Q1FY24 and sticky inflation.

Also Read Wall Street week ahead: All eyes connected Federal Reserve’s involvement complaint determination and jobs data

The U.S. Gross Domestic Product (GDP), a broad gauge of goods and services produced from January to March, expanded astatine a 1.6% annualised rate, falling abbreviated of the 2.4% forecast. While the halfway Personal Consumption Expenditures (PCE) terms index, excluding nutrient and energy, roseate by 2.8% year-on-year successful March, maintaining the aforesaid level arsenic February and somewhat surpassing expectations.

Also Read: US Fed conscionable ahead: What bash dimming complaint chopped hopes mean for Indian banal market?

The persistent inflationary figures person raised concerns that the Federal Reserve mightiness request to prolong elevated involvement rates oregon adjacent see complaint hikes successful the future. 

With the Fed acceptable to denote its involvement complaint determination connected Wednesday, investors are intimately awaiting Chair Powell's statements for insights into the anticipated timing and frequence of involvement complaint adjustments projected for the year, particularly amidst ongoing inflationary pressures.

Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 29 Apr 2024, 05:21 PM IST