Karvy Stock Broking Limited has maintained ‘buy’ rating on ICICI Bank stock with an intraday target of Rs 390.

According to Karvy, interested traders can purchase the stock above Rs 370 with a strict stop loss of Rs 360. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 395.
 
Shares of the company, on Friday (Dec 05), closed at Rs 358.45 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 7343911. Current EPS & P/E ratio stood at 37.03 and 9.94 respectively. The share price has seen a 52-week high of Rs 1465 and a low of Rs 282.15 on BSE.

The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.

On Dec 6, ICICI Bank declared a 1.5 percentage point cut in interest rates on home loans, to 11.5% from 13% earlier, for all loans below Rs 20 lakh.

The announcement was immediately after the central bank (RBI) slashed its key rates and declared a package of measures for the recession-hit segments including small industries, exports and realty.

The rates will be available for fresh loans and existing loans will continue to be charged at the previous rates as the banking institution has made no modification in its prime lending rate (PLR).

ICICI hopes the move to help revive demand for property. Several public sector banks have already announced a cut in their PLR.

On Nov 26, Credit Analysis & Research (CARE) has reaffirmed AAA rating for the a range of outstanding long term instruments of ICICI Bank and it has also assigned AAA rating to enhanced upper tier II bond programme of IBL aggregating to Rs 80 billion (enhanced from Rs 40 billion).

Other stocks from the same sector that looks good for short-term as well as long-term trading includes YES Bank, Kotak Mahindra and HDFC Bank.