If indeed PSU bank resurgence comes at the ultimate cost of private banks losing their premium valuation and the banknifty becomes a battleield, not just investors and speculators but the industry itself might be a loser. But then we just print the India morning report currently aand others are already into the India budget exercise with the PM seetting the cat among the pigeons even with a reasonable proposal for staggered increases in Diesel and kerosene prices therefore reducignn the subsidy burden on a sustainable basis.
Getting back to the market’s fair and only topic currently the good market breadth is already undermined by the unseeming ssnsip in the banknifty led by cuts in YESS and ICICI bank and HDFC Bank also being questioned again at current valuations without cause one feels as the growth promise held by these three and another 3-4 good abnks in the index is worth much more to India Inc.
The market is a seeming mass of confusion as Mid Cap trades in LIC housing and even Kotak wwhich has not grown asset base to Fort Knox jostle with bull trades on long neglected and yet mismanaged and loss making Bank of India, Canara Banka nd even BOB which has proved oto be unsustainable in available results but is considered likely than others to beat the NPA rap.
One was also impressed by a NBFC lead in the morning issue of DNA whence NBFCS will take on the increase in CAR and NPA standards with a corresponding decline in LTVS to preserve current profitability levels