 "Rating agency stocks rally; ICRA, CRISIL hit new high")
Shares of all three listed rating agencies – ICRA, CRISIL and CARE – are in focus and trading at their multi-years high on the Bombay Stock Exchange (BSE) amid heavy trading volumes.
On the BSE, ICRA has rallied as much as 10% to Rs 3,199, while CRISIL has moved up by 5% to Rs 2,000. Credit Analysis and Research Ltd (CARE), on the other hand, has rallied 2.3% to Rs 1,110.
ICRA and CRISIL are trading at their record highs, while CARE is just 4% away from its all-time high of Rs 1,156 touched in June.
All these three stocks have outperformed the market by surging over 50% so far in 2014, compared to 23% rise in benchmark S&P BSE Sensex. ICRA has nearly doubled from Rs 1,632 at the beginning of 2014, while CRISIL has surged 66% and CARE by 54% so far in the current year.
According to analysts, rating agencies will be beneficiary of the government’s initiatives to deepen the corporate bond market over the long term.
"ICRA is well placed to gain from the cyclical and structural uptick in the corporate debt market owing to its strong position in the segment. Sound shareholding and brand will drive market share gains, as credibility of ratings comes to the fore in a tough macroeconomic environment," Edelweiss Securities said in research report dated May 14, 2014.
On the BSE, ICRA has rallied as much as 10% to Rs 3,199, while CRISIL has moved up by 5% to Rs 2,000. Credit Analysis and Research Ltd (CARE), on the other hand, has rallied 2.3% to Rs 1,110.
ICRA and CRISIL are trading at their record highs, while CARE is just 4% away from its all-time high of Rs 1,156 touched in June.
All these three stocks have outperformed the market by surging over 50% so far in 2014, compared to 23% rise in benchmark S&P BSE Sensex. ICRA has nearly doubled from Rs 1,632 at the beginning of 2014, while CRISIL has surged 66% and CARE by 54% so far in the current year.
According to analysts, rating agencies will be beneficiary of the government’s initiatives to deepen the corporate bond market over the long term.
"ICRA is well placed to gain from the cyclical and structural uptick in the corporate debt market owing to its strong position in the segment. Sound shareholding and brand will drive market share gains, as credibility of ratings comes to the fore in a tough macroeconomic environment," Edelweiss Securities said in research report dated May 14, 2014.