Curated By: Business Desk
Last Updated: October 26, 2023, 12:53 IST
The decline in stocks is a result of the Israel-Hamas conflict.
Investors are now thinking of investing in some of the major banks, after undergoing a breakdown.
The worldwide decline in stock markets, largely attributed to the Israel-Hamas conflict, has created a unique scenario that presents investment opportunities. Market experts are advising investors to consider quality stocks during these challenging times.
Ongoing conflicts, such as the one between Israel and Hamas, can have a profound impact on global financial markets, leading to stock market fluctuations and affecting various sectors. Notably, the banking industry has been feeling the repercussions of these geopolitical tensions, with many investors offloading banking stocks in response to market uncertainties. However, amid the turmoil, some see a potential silver lining and view this as an opportune moment to invest in major banks.
One specific stock that has experienced a notable downturn during these turbulent conditions is that of ICICI Bank, one of India’s prominent financial institutions. According to reports, HDFC Securities, a domestic brokerage house, has recommended buying shares of ICICI Bank, setting a target price of Rs 1190. This recommendation comes on the back of the brokerage firm maintaining a buy rating on the stock, in light of the bank’s second-quarter performance.
ICICI Bank’s stock price has dipped approximately 1 per cent over the past month, falling from Rs 1008 to Rs 917.40. Despite this short-term setback, the bank delivered better-than-expected results in September, witnessing a substantial 36 per cent increase in profits. Profits surged from Rs 7,558 crore to Rs 10,261 crore during that period. Furthermore, the bank’s interest income also rose by an impressive 24 per cent on an annual basis, climbing from Rs 14,786.81 crore to Rs 18,307.91 crore in the second quarter of the financial year.
ICICI Bank, established in 1955, made its foray into the financial sector in 1994 when its subsidiary, ICICI Bank, was founded. Coincidentally, this was the same year that HDFC Bank, another influential player in the Indian banking industry, was also established.