Global financial services firm Morgan Stanley has upgraded ICICI Bank to "overweight" from "equal-weight".
According to Reuters report, the stock's target price has also been raised to Rs 1,250 from Rs 1,235, as the financial services player expects a pickup in consumer loan growth to drive the bank's performance.
Morgan Stanley also cites valuations as well as ICICI's efforts to "repair" its balance sheet and improve profitability.
Shares of ICICI Bank rose 1.7 per cent to Rs 1,005.60 intra-day, before closing the day's trade marginally higher from its previous close. The stock gained 0.12 per cent to close at Rs 989.95 on the Bombay Stock Exchange on Tuesday.
Meanwhile, the 30-share BSE Sensex dropped to its lowest closing level since September 13, 2012, shedding 211.30 points, to settle at 18,226.48.