Hold IDFC, advises Siddharth Teli

Siddharth Teli of Religare Capital Markets told CNBC-TV18, "The key issue with IDFC is that yesterday a cap was put on their FII limit so that was the thing which triggered the initial falls. It seems there could be an exclusion for IDFC in some of the major indices."

He further added, "From a valuation standpoint now IDFC actually trades below FY14 book even if I were to adjust for the goodwill. So our sense is that from a valuation standpoint it is fairly okay. However, it is in infrastructure space with a lot of exposure to the power sector where things have not improved meaningfully. So that is weighing on the stock as well." "We will be sellers in the stock. In the near term we are not seeing any catalyst either. So at best we would have a hold on this name and that is in synch with the ratings which we have with ICICI Bank and Axis Bank as well."