Harendra Kumar neutral on IndusInd Bank

Harendra Kumar of Elara Capital told CNBC-TV18, "At the moment we have neutral rating on IndusInd Bank because we believe that the Bankex is going to be on the sideways path for a significant amount of time. So there are two new stresses that are emerging on the market after infrastructure is the state electricity boards and the steel sector at this given point of time and the overall recapitalisation on public sector undertaking (PSU) banks is not going anywhere. Though the government has come out and said that it is going to infuse some capital but the pain is far larger than what people are anticipating. So it is six months before we start looking at it and that is precisely why HDFC Bank is outperforming at this given point of time because of the lack of the lack of options."

At 10:48 hrs IndusInd Bank was quoting at Rs 902.15, up Rs 7.50, or 0.84 percent. It has touched an intraday high of Rs 907 and an intraday low of Rs 898.30.