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ICICI Bank: Unwarranted Beating, Proven Growth Prospects

$51 may be the value you give it, its going to take a while getting there. Inflation can't be wished away - reasons are not far to seek - the government has been raising petrol prices after putting it off for too long. It still has a while to go before its done raising petrol prices. This is going to lead to more inflation and on a higher base... Elections are in 2009, the govt. will have created a classic recession by then trying to control inflation. What does this mean - Lots of NPAs for ICICI, (watch for the NPA percentage shooting up), demand loss for retail loans due to multiple reasons - IT market is saturated, growth is slowing, recessionary conditions forcing customers to slow spending. This is already showing up in multiple places. Maruti Suzuki has started offering huge discounts trying to shore up car sales.