IDFC has surged over 7% to Rs 144 on back of heavy volumes after Morgan Stanley raises its price target for the company to Rs 175 from Rs 115.
The stock opened at Rs 137 on BSE and has over four-fold jump in trading volumes. At 1440 hours, a combined 28.45 million shares already changed hands as against an average sub 5 million shares that were traded daily in past two weeks on BSE and NSE.
A foreign investment bank upgraded the IDFC stock to "overweight" from "underweight" citing potential benefits after the Reserve Bank of India (RBI) Governor Raghuram Rajan hinted at the possibility of exempting banks from liquidity ratio norms when raising debt for infrastructure.
IDFC in April this year received in-principle approval for banking license from the RBI.
The foreign investment bank said that IDFC's under-performance recently may be unjustified given its "good management, strong balance sheet, and diversified financial presence."
In past one year, IDFC has underperformed the market by gaining 15% compared to 27% rise in S&P BSE Sensex and 33% rise in CNX Nifty.
The stock opened at Rs 137 on BSE and has over four-fold jump in trading volumes. At 1440 hours, a combined 28.45 million shares already changed hands as against an average sub 5 million shares that were traded daily in past two weeks on BSE and NSE.
A foreign investment bank upgraded the IDFC stock to "overweight" from "underweight" citing potential benefits after the Reserve Bank of India (RBI) Governor Raghuram Rajan hinted at the possibility of exempting banks from liquidity ratio norms when raising debt for infrastructure.
IDFC in April this year received in-principle approval for banking license from the RBI.
The foreign investment bank said that IDFC's under-performance recently may be unjustified given its "good management, strong balance sheet, and diversified financial presence."
In past one year, IDFC has underperformed the market by gaining 15% compared to 27% rise in S&P BSE Sensex and 33% rise in CNX Nifty.
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