This Article is From Jul 07, 2014

IDFC Gains; Morgan Stanley Upgrades to 'Overweight'

Shares in IDFC gained as much as 6.7 per cent to Rs 142.95 after Morgan Stanley upgrades the stock to "overweight" from "underweight" and raises its target price to Rs175 from Rs115.

The investment bank cites 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 says IDFC's under-performance recently may be unjustified given its "good management, strong balance sheet, and diversified financial presence."

The brokerage says IDFC can go up to Rs300 in a bull case scenario.

IDFC is up 26.8 per cent in 2014, lagging 35.9 per cent gains in the Bank Nifty over the same period.

As of 1.10 p.m. shares in IDFC traded 6.53 per cent higher at Rs 142.75 compared to 0.14 per cent gain in Nifty.

 

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