Private sector lender ICICI Bank crossed Rs 5 lakh crore in market capitalisation for the first time only to become the second bank to attain the said feat.
Among banks, HDFC Bank, the country's largest lender by assets, remained at the top with Rs 8.7 lakh crore market capitalisation, while SBI is at the third spot with Rs 3.81 lakh crore market cap, Kotak Mahindra Bank at 4th (Rs 3.47 lakh crore) and Axis Bank at 5th position (Rs 2.46 lakh crore).
At the time of writing this report, ICICI Bank stock traded at Rs 724.50 on the BSE, up 0.79 percent. Its market cap stood at Rs 5,01,202 crore. The stock hit a record high of Rs 734.85 today.
The stock has consistently been moving upwards despite intermittent consolidation and correction, registering nearly 84 percent gains in last one year.
In terms of returns, ICICI Bank is the second-biggest gainer in the last one year among big banks after State Bank of India that gained 95 percent. Axis Bank rallied 62 percent, HDFC Bank 40 percent and Kotak Mahindra Bank 22 percent in the same period.
The approval to the re-appointment of Sandeep Bakhshi as Managing Director & CEO of ICICI Bank by the Reserve Bank of India on August 24 also aided sentiment. Bakhshi will remain MD & CEO of the country's second largest lender till October 3, 2023.
Experts largely believe the banking sector to outperform with the expected economic recovery, so ICICI Bank should remain a long term investment.
"ICICI Bank, along with large peers such as HDFC Bank, represents a very strong and stable long term value prospect for both retail and institutional investors. Combined with the positive tail winds of the India growth story, and with favourable upturns in India as a value destination for return seeking capital, we can expect the banking sector to continue to outperform, and ICICI should remain a beneficiary of such value growth," said Utkarsh Sinha, Managing Director at Bexley Advisors.
He further said the RBI approval for Bakshi's extension should also be read positively, but more importantly, ICICI has a long history of pedigreed management. "Short term blips aside, it enjoys a deep bench of talent which should give investors comfort about its long term prospects and continuity in practices."
Technically, ICICI Bank is trading in an ascending channel. "It has also given a breakout of Cup and Handle formation and has reversed after retesting the breakout line. We can expect the target of Rs 790 in next 3-6 months," said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.