Exit Axis Bank on rallies, says Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "For Axis Bank, it is difficult because if the valuation at the time of merger is going to be higher than this then certainly, there is no point selling the stock. But if no merger is going to take place, then these are attractive levels to switch out from Axis Bank to some of the other private sector banks.""I have always been saying that one has to be very careful which banks one has invested in because there is only so much allocation in the portfolio that you can give to the banking sector and there are so many eligible candidates in the investor's portfolio as far as private sector banks are concerned which are far better than Axis Bank.""So, to be in Axis Bank and expect that the company will recover and fundamentals will start driving the stock is a bit farfetched at this point in time. This merger and acquisition (M&A) activity is very difficult to call from an analyst's perspective, because it could take place or it could not take place," he said."My sense is there is going to be a complicated transaction because bank mergers are never that easy and many agents including RBI are involved and there are many regulatory hurdles as well. So, I would like to curb the enthusiasm as far as Axis Bank is concerned at this point of time and look for exit opportunities if the stock rallies even further from these levels."