Despite a shaky Q3, conviction over the stock remained high, with 65 per cent of the analysts polled on Bloomberg retaining their 'buy' recommendation.
This is a key reason for the finance ministry's objection to fixing the tenure at 100 years, as it is pushing PSBs to be self-dependent and raise funds from the market, reports Hamsini Karthik.
'The concern that the bad bank may create a moral hazard for the system is extremely valid.'
With the Reserve Bank of India's (RBI's) draft reconstruction scheme for the troubled lender suggesting a permanent write-down of these bonds outstanding as of March 5, bondholders who have invested RS 10,800 crores are up in arms, reports Hamsini Karthik.
Stocks such as ICICI Bank, Axis Bank, State Bank of India, Bank of Baroda and HDFC Bank are among the top banking picks of analysts for 2017. A decline in cost of funds and treasury gains are expected to help stabilise their net interest margins
Some sectors like aviation, hospitality, travel and tourism, and automobile have witnessed zero cash flow since the lockdown began.
Unless companies press the pedal on implementation, further stock price gains might be limited, says Hamsini Karthik.
Banks are clear that lending rates are not going to fall further, say Hamsini Karthik and Anup Roy.
The problem for the NBFC sector is the funding inertia by banks and not lack of funds.
The coming years could be exciting for Bandhan Bank, IDBI Bank, IDFC First Bank, Federal Bank, and CSB Bank.
Johnson Controls-Hitachi, Voltas, Blue Star, Whirlpool recently recorded new 52-week highs but still haven't lost their steam
'Unless India Inc's earnings offer promise in March 2017 quarter, sentiment may not reverse in a hurry.'
Experts say the stock market correction in recent times increases the risk-reward in favour of large-cap stocks.
'We have seen a host of businesses across sectors generate economic value and wealth for investors.'
Thinning valuation gap between these and mid-caps indicates a shift in investors' preferences.
With at least three IPOs in the offing this year, stock market investors have a lot to look forward to.
While gold returned 12 per cent annual gain in 10 years, Nifty didn't exceed 9 per cent.
'Despite uncertainties around demonetisation and the GST, we expect Indian equities to deliver positive returns.'
'It is unlikely that foreign portfolio investors (FPIs) might increase their India allocation, given the overweight status for most FPIs.' 'Given the commentary from the Republican Party, an anti-imports approach means money will not flow out of the US.'
'This is the first time we will see how SIP investors react to market correction.'
'The domestic scenario is much better than earlier, demonstrated in the March quarter earnings.'
'It is almost four years since we've seen strong growth in earnings.' 'The markets have rallied about 20 per cent in the past year, which is ahead of earnings.' 'So, the stress now will be on earnings to catch up.'
Hamsini Karthik reveals why the ongoing business rejig will help unlock value for shareholders of Grasim, Reliance Capital and Tube Investments
Known for stable returns, near debt-free status and dividend track record, these 10 PSU stocks are worth buying now.
'I have very little faith in economists who tell me that demonetisation will reduce growth.' 'The greater effect of demonetisation is if it creates changes in the financial services system and gets people to shift from cash.' 'The economy is not a trained monkey that will jump around if you lower rates.'
Five stocks - Havells, NCC, Suzlon, Blue Star and Crompton Greaves look most attractive after the recent course correction.
Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction.
Infrastructure stocks are once again gaining traction.
The infra-major going belly up cracked open some major flaws in the system - the most evident being weak corporate governance and how layers of corporate structures could be formed adding to the opaqueness of the group.
'The Street is divided on when we could recover from demonetisation.' 'The government believes it is a pain at best for two quarters.' 'Some analysts feel the impact could be felt for two-three quarters and some that it could last for 12 to 15 months.' 'Investors are stuck in a no-action zone.'
'The true fruits of the attack on black money, what Raghuram Rajan did for the banking system, and what technology is doing for us will come in FY19, which, not surprisingly, is the year running up to the next Lok Sabha elections.'
A section of analysts feel now may not be a bad time to buy select PSBs.
P S Jayakumar, managing director and chief executive officer, Bank of Baroda, speaks to Abhijit Lele & Hamsini Karthik about loan recoveries, sounding more confident than a year before.
In a conversation with Vishal Chhabria and Hamsini Karthik, Gautam Chhaochharia, executive director & head, India Research, UBS, explains why implementing goods and services tax (GST) may not be as disruptive as many perceive it to be. But, he warns investors shouldn't have high expectations on corporate earnings.
Check out some of the stocks that will react on the basis of their numbers in the near term.
Investment in market leaders with a safety-first approach could yield reasonable returns across sectors.
It has been a decade since Shyam Srinivasan took over as managing director and chief executive officer at Federal Bank. He wants to ramp up the bank's unsecured lending going ahead even as it homes into the space vacated by competition. Reappointed for a fresh three-year term as the bank's helmsman, he spoke to Hamsini Karthik on the plot ahead.
It is advisable to stick to mid-caps with sustainable financial metrics rather than those offering the promise of faster growth.
Unlike in the past, when old private banks compromised upon underwriting standards to take on the bulk, they've now realised that scaling up at the cost of quality isn't worth the while. These banks have also readjusted growth targets when required, and rebalanced books to preserve capital and asset quality.
Axis Bank Managing Director & Chief Executive Officer Shikha Sharma on the new mechanism for non-performing loans, the bank's loan portfolio, industry outlook and the bank's future plans.
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