Nifty Bank index has corrected nearly 35 percent since February 1, 2020, after the markets started falling in the wake of the coronavirus outbreak.
Image: Reuters
Shares of some top banking players, such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and IndusInd Bank plunged up to 7 percent in early trade on NSE on March 20 even as Sensex and Nifty traded flat.
Many bank stocks are trading near their respective multi-year low levels amid a widespread sell-off.
Nifty Bank index has corrected nearly 35 percent since February 1, 2020, after the markets started falling in the wake of the coronavirus outbreak.
In the index, stocks have fallen up to 60 percent since then and it looks difficult to say how they are going to fare in the near-term.
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Even as top brokerages and financial firms such as Morgan Stanley believe large private banks, including ICICI Bank and HDFC Bank, are better placed, given their market share gains, they also underscore that the near-term volatility may be high.
Global brokerage firm Credit Suisse is of the view that after the Yes Bank bailout, the market is concerned about the deposits.
The global brokerage said larger private banks are well capitalised and competitively well-positioned and HDFC Bank, ICICI Bank and Axis Bank remain its top picks.
Meanwhile, HDFC Bank on March 19 said it had allotted 14,17,156 equity shares to the employees of the Bank pursuant to exercise of options under its Employees Stock Options.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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First Published on Mar 20, 2020 09:49 am
