Research icon:Time to weed out stressed stocks from your portfolio; ICICIdirect picks SBI, Axis Bank
ICICIdirect is of the view that in the current NBFC crisis, banks are the real beneficiaries both in terms of costs and assets
The IL&FS crisis has not only affected borrowers of the beleaguered company but also hurt the confidence of investors in the Indian financial market leading to a liquidity crisis situation.Companies like Dewan Housing, Reliance Capital (ADAG Group) and Indiabulls Housing Finance have suffered the most in this meltdown. Hence, it is time to move out of stocks that are under stress to more stable stocks such as SBI and Axis Bank, ICICIdirect said in a report.Rating agencies have downgraded Dewan Housing Finance, Reliance Home Finance and Reliance Commercial Finance to D (Default).Most of the housing finance companies (HFCs) are also suffering from an asset-liability mismatch apart from high funding costs in a tight liquidity scenarioThe domestic brokerage firm is of the view that in the current NBFC crisis, banks are the real beneficiaries both on costs (due to rich CASA) and asset (due to market share gains, competitiveness).A sharp decline in 10-year G-sec yields to 6.8 percent is expected to result in treasury gains. The asset quality for banks is on a recovering trajectory while larger case resolution should add to the profitability of large corporate banks such as SBI and Axis Bank, added the ICICIdirect report.
For More Info Whatsapp On @ 9479577718Quick Free Trial 8871888787Email: support@researchicon.comvisit : www.researchicon.com
Comments
Post a Comment