Investors of HDFC and HDFC bank are changing their holding in the financial space. They are reducing bets on HDFC and HDFC bank, which is top under-performers in past few months and increasing the stakes in ICICI Bank and State Bank of India. It is because of uncertainty about the proposed merger of HDFC and HDFC bank. Also this shift in stocks is also due to HDFC bank’s poorer-than-expected performance.
“it is quite likely that investors will shift from the HDFC group to other significant banks because of the risk of over exposure in stocks and a lengthy period of regulatory clearance hurting near-term performance.”, Vinod Nair, Head of research, Geojit Financial Services.
Investors are giving preference to ICICI Bank and SBI rather than HDFC bank due to cheaper valuation. ICICI Bank is on the top of investor’s choice.