IDFC gains as Morgan Stanley upgrades stock to 'overweight'

IDFC shares gained 6.2 per cent on the BSE after Morgan Stanley upgraded the stock to 'overweight' from 'underweight' and raised its target price to Rs 175 from Rs 115. The investment bank cited potential benefits after RBI Governor Raghuram Rajan hinted at the possibility of exempting banks from liquidity ratio norms when raising debt for infrastructure. Morgan Stanley also said IDFC's under-performance recently might not be justified, given its 'good management, strong balance sheet, and diversified financial presence.' IDFC was up 26.8 per cent in 2014, lagging 35.9 per cent gains in the NSE bank index over the same period.