GDP to decelerate in 2025, RBI to cut rates soon: Goldman Sachs
It forecast India's headline inflation at 4.2 per cent (average) in 2025 with food inflation at 4.6 per cent.
Analysts at Goldman Sachs said the steep correction in private bank stocks on Thursday after the fall post-election results, offers opportunities to accumulate private banks.
Notably, the private bank stocks recovered sharply in two days after they witnessed a steep decline owing to post-election verdict uncertainty.
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Shares of HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank, and Federal Bank surged up to 8% in 2 days on Thursday, as against 4% rise in the benchmark Nifty 50 index during the same period.
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Analysts at Goldman Sachs remain bullish on HDFC Bank, Kotak Bank, Axis Bank, and IndusInd Bank.
“The fundamentals are more important than the narrative. We continue to favour private banks over PSUs,” it said in a note.
In the Q4FY24, the credit growth stayed healthy for private banks at 30% year-on-year.
As per the latest RBI data, overall credit growth for the banking system has stayed healthy at 20% YoY in May 2024, supported by the merger of HDFC and HDFC Bank, while it stood at 16% adjusted for the impact of the merger.
Kotak Institutional Equities also said that banks reported a good Q4FY24 as operational profitability holds up. Asset quality also continued to improve, while the proportion of delinquent loans on the balance sheet continued to decline.
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