INDIA: ICICI shrs jump on e-business valuations. |
Reuters English News Service
BOMBAY, April 7 (Reuters) - Shares of Indian financial services firm ICICI Ltd rose eight percent in Friday deals buoyed by higher valuations projected by analysts, in view of its Internet focus.
In afternoon deals, ICICI shares were up 10.15 rupees at 137.30 at the Bombay Stock Exchange at the eight percent upper circuit limit.
On Thursday leading research house Morgan Stanley Dean Witter said in a research report it had raised its 12-month price target for Indian financial services firm ICICI to 207 rupees per share factoring in an upside from its e-business initiatives.
The firm said that it had valued ICICI 's core financial services business at 164 rupees per share for March 2001 and its e-business initiatives at 43 rupees.
"The firm is technology savvy and its innovative ways of providing services have made it an investor favorite compared to other stocks in the sector", Fayeza Feroz analyst at Pranav Securities said.
Dealers said the jump in ICICI share price is also helped by the sharp overnight rise in its American Depositary Receipts (ADRs) listed at the New York Stock Exchange which surged 17.76 percent to close at $22-3/8.
Dealers said its recent tie-ups have also enthused market players.
ICICI 's fully owned subsidiary ICICI Infotech on Tuesday tied-up with Sun Microsystems for jointly incubating dotcom startups and for creating a data centre.
"Investors not merely looking at the spreads which is the key income for a financial firm but are more interested in ICICI 's innovative plans in e-commerce related fields", Feroz added. ((Sudhir Shetty, Bombay equities, +91 22 265-9000, +91 22 264-1699, firstname.lastname@example.org)).