Financial services sector: In this phase of upmove, is a basket better than focusing on one? 12 stocks with upside potential of up to 46%
With the bulls back in play, is it time to look at financial services stocks once again? Before we answer that, let’s ask ourselves three questions. One: Is the sector better placed after the clean-up by the RBI? Two: In a growing economy like India, can it be that this sector does not grow? And three: Can FIIs, whose selling caused the recent underperformance of stocks from the sector, again pick up these stocks when they return? The answer to the first question is ‘yes’. And it is a ‘no’ for the second question. The answer to the third question is still open.
With the bulls back in play, is it time to look at financial services stocks once again? Before we answer that, let’s ask ourselves three questions. One: Is the sector better placed after the clean-up by the RBI? Two: In a growing economy like India, can it be that this sector does not grow? And three: Can FIIs, whose selling caused the recent underperformance of stocks from the sector, again pick up these stocks when they return? The answer to the first question is ‘yes’. And it is a ‘no’ for the second question. The answer to the third question is still open.
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