IDBI Bank extends rally, stock up 4%; analyst predicts further 18% upside

IDBI Bank stock has gained 13 per cent in February so far after the Union Budget rekindled hopes of disinvestment. Bonanza technical analyst expects the stock to target ₹125 - ₹130 in the near-term.

IDBI Bank stock jumped another 4 per cent to an intra-day high of ₹113.50 on the NSE in Thursday's intra-day trading session despite a tepid trend in the broader market.  At 10:30 AM, IDBI Bank shares traded with a gain of 2 per cent at ₹111.57, and the counter had seen trades of around 20 million equity shares on the NSE. In comparison, the NSE Nifty 50 index was down 0.5 per cent or 135 points at 25,640.  IDBI Bank had hit a multi-decade, near 15-year high at ₹118.30 in the month of January 2026. The stock last traded above January high level in May 2011.  Thus far in the month of February, the stock has surged nearly 13 per cent after the Union Budget 2026 rekindled hopes of divestment in the company.  The government in the Union Budget 2026-27 has set a disinvestment target of ₹80,000 crore, which includes share sale in public sector undertakings (PSUs) and asset monetisation.  ICICI Securities said a note highlighted that the government's disinvestment for FY27 is 135 per cent higher when compared to FY26 estimate of ₹33,837 crore. The brokerage firm believes that the Centre may be banking on large transactions such as IDBI Bank and LIC stake sales.  ALSO READ | IDBI Bank spurts 10% on heavy volumes in subdued market  Finance minister Nirmala Sitharaman said the government will pursue all cabinet-approved disinvestment proposals, signalling continuity in strategy. Additional stake dilution in select PSU banks is also planned to meet minimum public shareholding norms, ICICI Securities said.  As of December 2025 quarter, Life Insurance Corporation of India (LIC) (49.24 per cent) and Government of India (GoI) (45.48 per cent) collectively held 94.71 per cent shareholding in the IDBI Bank. Both have stated their intent to divest their shareholding in the bank through a strategic stake sale.  The strategic disinvestment of the Bank is in process and entirely being handled by DIPAM, said IDBI Bank. 

IDBI Bank stock technical outlook

  Drumil Vithlani, technical Analyst at Bonanza believes that IDBI Bank is showing a positive technical setup, supported by a rising trend line and improving momentum. 

 

  "The stock has formed higher-lows and is sustaining above key moving averages, indicating strengthening buying interest. A decisive move above ₹110 can further accelerate upside momentum," explains Vithlani.  From a trading strategy point, the analyst recommends traders to consider buying IDBI Bank stock in the range of ₹105 – ₹108, for a likely upside target of ₹125 and ₹130. This translates into an upside potential of 18.4 per cent when compared to yesterday's close. Vithlani recommends maintaining a strict stop-loss at ₹95 to manage risk effectively.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.