ICICI Bank hit an all-time high today at Rs.458.35, up 6%. Its market cap too is inching very close to the Rs.3 trillion mark, currently at Rs. 2,89,002 crore.
Since the time the Govt announced the cut in corporate tax, the stock has been surging all along. It has gained 7.5% over this one week period. Over a one year period, it has outperformed the Sensex by a whopping 37%.
Many brokerage houses, post the tax reduction announcement have put out reports stating that the bank earnings will start showing an uptick from FY21 and it could see multiple fund houses giving it an upgrade.
JP Morgan currently has an “overweight” rating on ICICI Bank with March 2020 target price of Rs.500.
So the surge we are seeing now is on acocunt of big fund houses taking posiiton in the stock, to ride the wave in FY21.