Stock of the Day
ICICI Bank (IBN) is showing surprising strength. The company is a broadly diversified financial institution and bank in Inida, its 2nd largest. And growth has been on a torrid pace.
But the stock has been volatile recently. This is because rates are going up in India, and the perception is that this would weigh on financials. I spoke with my best India contact, and he told me that just because rates are moving higher doesn't mean that credit demand won't continue among India's burgeoning consumer base.
I was worried about my position a little last week, but what a difference a week makes. Today, the stock is vaulting more than 6% higher on a huge spike in volume. The stock is also hitting a new 52-week high. The volume confirmation is encouraging, and indicates more new highs to come.
long IBN
posted by J. Kahn @ 12:05 PM
1 comments
1 Comments:
Recent crr rate increase and lending rate.has effected the bank badly.if real estate cools in india icici will break is its seams since substatial amount of its real estate loans are for speculation.its rapid rise is an example of bubble growth. The recent boom in shares of icici is fuelled by carry trade.it may become the enron of india.http://www.manojsai.wordpress.com
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