With rupee almost touching new lows in consecutive sessions, banking stocks have been battered. Siddharth Teli of Religare Capital Markets feels that the sector may see some more downside due to the stress on its asset quality. "With rupee/dollar depreciating, our bond yields are also surging. We will have to see the exposures that Indian banks have on corporates that have unhedged currency exposures. There would be some incremental asset quality stress from there as well," he explained. The Bank Nifty fell more than five percent on Tuesday, reacting to the currency’s freefall. He told that among the financial stocks, HDFC and HDFC Bank were the preferred ones as they held on better than others. He also recommends holding IDFC .
Posted on: Tue, 27 Aug 2013 10:12:13 +0000
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