P Lilladher neutral on Financial Services Sector

Prabhudas Lilladher's report on Financial Services Sector:

Since the equity market crash in January this year, the IPO market has been moribund. Total monies raised from the primary market this February onwards has been a modest Rs 43 billion from 25 issues. Many IPOs that were to hit the markets are currently in the pipeline. While the pipeline indicates the magnitude of the opportunity for India’s top investment bankers, it is quite clear that such sums cannot be raised in the absence of an improvement in both local as well as international market sentiment. If and when sentiment does improve, companies under our coverage such as Edelweiss (OP), Motilal Oswal (MP) and Kotak (NR) would be major beneficiaries while companies like India Infoline (MP) and IDFC (OP) would be beneficiaries to a small extent. We maintain our Neutral stance on the financial services sector.

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