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Incremental investments may go into PSUs as well as smaller private sector banks just to get the alpha going, says
Elixir Equities.
Barring the post Budget rally when the banks actually led the charge, we have seen stark underperformance from banks. Even the most preferred ones on the street like an ICICI Bank are struggling to stay afloat at Rs 580. What is causing this underperformance?
To an extent, private sector banks are over owned and investors are moving into some of the smaller sized banks within the private sector space like IDFC First,
Federal Bank. That is one trend which is underway. More importantly, the next 12 months look far more exciting for PSU banks, for NBFCs per se rather than the stable, safe banks like HDFC, ICICI, Axis and Kotak.