Published on Fri, Jul 04, 2008 at 15:32 | Source : CNBC-TV18
Updated at Mon, Jul 07, 2008 at 13:04
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Angel Broking sees further downside in mkts
Vaibhav Agrawal of Angel Broking said that there is bound to be some amount of MTM (market to market) losses this quarter. He feels that top banks are a good buy. “There could be some further downside in the near-term with more bad news on the horizon”, he added.
Vaibhav Agrawal of Angel Broking said that there is bound to be some amount of MTM (market to market) losses this quarter. He feels that top banks are a good buy.
"There could be some further downside in the near-term with more bad news on the horizon", he added.
Excerpts from CNBC-TV18's exclusie interview with Vaibhav Agrawal:
Q: Inflation is out and is expected to go higher. The government is also talking about 13%. What would be the net impact on banks and what are you doing with your report on them right now?
A: We have reduced our earnings estimates for banks across the board. We have also reduced our target prices. A lot of banks are attractive right now, at these valuations. So, we are maintaining a bias on them. But we have reduced our estimates.
Q: Where will the pain show? Will it come on margins or volumes or both? Where does the treasury fit in, especially in banks that may have moved their investments into the Hold to Maturity category?
A: ICICI Bank , Axis Bank and HDFC Bank . There is a lot of value even in the PSU bank space. But there could be further downsides in the near-term. So, it would probably make sense to stick with the best quality banks right now.
