Tuesday, January 8, 2008

ICICI Bank Drives Indian Shares To Record High

India''s main share index shrugged off weak global markets on Jan 7 to post its third record high of the new year, riding a gain of more than six percent in ICICI Bank on market talk of a proposed share sale in one of its units. Analysts and traders said ICICI, the country''s most valuable bank which accounts for more than 10 percent of the benchmark index, was planning an initial public offer for its investment banking and broking unit, ICICI Securities. The bank held a meeting for select group of investors on Jan 7, and traders said that was the source of the talk, which helped the stock recover form an early fall of 3.9 percent to end up 6.1 percent at a record close of 1,363.90 rupees.

According to the sources, ICICI Bank is exploring various opportunities for its subsidiaries and that an announcement would be made if there was any decision. The benchmark BSE 30-share index ended 0.61 percent, or 125.76 points, up at 20,812.65, its highest ever close. However, 18 components ended down.The index hit a record high of 20,861.83 during trade as the ICICI talk helped it recover from early losses of 1.2 percent after it was caught in a sell-off in global markets after weak U.S. employment data heightened fears of a U.S. recession.

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