Banking And Financial Stocks - Realigning Model Portfolio To Ride Next Leg Of Recovery: Motilal Oswal
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Motilal Oswal Report
Our banking, financial services and insurance Model portfolio delivered an in-line performance to the underlying benchmark (Nifty financial services Index) as banks, insurance, and non-lending financials outperformed.
However, this was offset by a sharp underperformance from non banking financial companies, primarily due to our underweight stance on the Bajaj Group.
However, interestingly, our key overweight calls on ICICI Bank Ltd., State Bank of India, Muthoot Finance Ltd., ICICI Securities Ltd., and IIFL Wealth Management Ltd. have all delivered superior returns.
While the earnings outlook remains encouraging, concerns around a potential third Covid-19 wave and sell-offs by foreign institutional investors remain overhangs.
Thus, we realign our Model Portfolio to navigate these headwinds.
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