HDFC top pick; buy IndusInd Bank for short-term: Irani

Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "We continue to remain positive on private banking space. Among private sector banks including the housing finance companies our top pick is Housing Development Finance Corporation (HDFC). Over the last 33 quarters if one looks at the asset quality it has continuously improved."

"We see the loan book continuing to grow by around 20 percent. Risk weightages changes introduced by the National Housing Policy (NHP) auger very well for HDFC. We expect the company to come up with wonderful numbers for the quarter ended June when it announces the numbers on July 19th," he added.
He further said, "We have a buy on the stock with a target of around Rs 1,075 over the next three quarters. If one looks at the stock, Rs 930 had become Rs 810 over the last 10-15 days and it was a great buy. Rs 810 has again rebounded back to around Rs 860-870 level."
"HDFC remains a top pick for us along with IndusInd Bank and HDFC Bank. We are preferring IndusInd Bank as the stock has relatively underperformed vis-à-vis HDFC Bank last week. So even from a shorter term view IndusInd Bank qualifies as a good buy and we expect wonderful numbers from this bank for the June quarter and a price of over Rs 490-510," Irani said.