Axis Bank shares rally 2% as Morgan Stanley predicts valuation gap to narrow with HDFC Bank, ICICI Bank; sets Rs 1,450 target

Axis Bank surged after Morgan Stanley reaffirmed its ‘Overweight’ rating and raised the target price to ₹1,450, signaling a 25% upside. The broker highlighted that Axis Bank trades at a 30–40% discount to HDFC and ICICI Bank on a price-to-book basis, expecting this gap to narrow as retail deposit growth and loan spreads align with larger peers.