ICICI Bank share price in Tuesday's session led gains in the Nifty Bank as global brokerage Morgan Stanley continued with its overweight call on the stock for a target of Rs 1,650 per share. The new set target implies an upside of 30 per cent from the previous close.

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In early trade, ICICI Bank shares went higher by up to 2 per cent to Rs 1,295 per share on the BSE. 

The brokerage believes power of compouding is in play in the counter and it remains its top pick despite its strong outperformance. In the last one month, even though the frontline indices have been on a downward trajectory, the stock has gained over 3 per cent in contrast to Nifty Bank which has gained around 4 per cent.

The stock in the last one year has zoomed 37 per cent, while the Bank Nifty during the same period has jumped as much as 18 per cent.

The brokerage believes improved funding/underwriting franchise has driven performance so far. Furthe, the brokerage anticipates earnings to continue to outperform peers helped by its improving delivery systems.

ICICI Bank Q2 results

The country's private sector lender in the September quarter reported 14.5 per cent increase in year-on-year (Y-o-Y) increase to Rs 11,746 crore amid healthy gains in non-interest income, fee income and treasury gains.