Shares of IDFC First today rose as much as 2% to 47.70 apiece, extending gains to the fourth day in a row. The stock is up over 10% over four sessions, sharply outperforming the Nifty Bank index.

Technically, shares of IDFC First of on a firmer ground, says HDFC Securities ina report. "Among the smaller banks, IDFC First Bank has given a clear break out from the congestion it was in. This is the fifth time the stock has broken out above its 200 day moving average. All the earlier four attempts were beaten back. This one seems to be on a firmer ground," the brokerage said in a note.

"Also, IDFC First is going to be big beneficiary of the revival in the telecom industry as its loan to telecom sector is the highest at 3.5% of its total loans," the brokerage added.

Over the weekend, telecom players Bharti Airtel, Vodafone Idea and Reliance Jio announced a hike in tariffs.

IDFC First Bank had posted a profit before tax of 100 crore for the quarter ended September 30, 2019, as compared to a loss of 583 crore in the corresponding period last year. Overall, the bank posted a net loss (after tax) of 680 crore for the quarter, as a result of one-time tax impact of 751 crore due to markdown of existing deferred tax assets.

At 9:45 am, IDFC First Bank shares had pared some gains and were up 0.53% to 47.10.