Nischint Chawathe positive on IDFC

Nischint Chawathe, Senior Analyst at Kotak Institutional Equities told CNBC-TV18, "IDFC's broad thought processes that they would set up the bank by October this year, seems to be on track, so the approvals have come just at the right time. Looking at the stock, we are positive in it, we have fairly high conviction on the management and our broad view is that over the next couple of years they would be able to set up a fairly good private sector bank and which is a reason we would say that this is a slightly more longer-term play but yes we would like to put our bets on IDFC."

"As far as Max India is concerned, what essentially the demerger does is that Max Financial Services will be a pure play life insurance company and in fact it would be the first pure play life insurance stock in India. It would directly be comparable to other life insurance companies which as and when they come for listing. The first one, which would come for listing as per what the management has indicated has been HDFC. Therefore, somewhere you would see valuation comparison between HDFC and Max. Per se the demerger really does not do anything it is just a splitting of business but it just helps investors to play a pure play life insurance business. You will also be able to have some valuation comparison given the fact that you will have HDFC and Max," he said.