Nirmal Bang: Banking & Financial Sector Q2 Earnings Review - Valuations Vulnerable Post Recent Run-Up
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Nirmal Bang: Banking & Financial Sector Q2 Earnings Review - Valuations Vulnerable Post Recent Run-Up

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

In the last two months, the Bank Nifty is up approximately 40%. Over the same period, the stocks in our coverage (excluding life insurance) are up 8-73% without any significant change in fundamentals, except for the positive commentary on improving collections and slightly better growth outlook.

In addition, the positive news flow around Covid-19 vaccines has contributed to the recent rally.

While we are no experts on the subject of vaccines in any manner, we do believe that the rally (in financials) more than captures the near-to-medium term fundamentals.

Click on the attachment to read the full report:

Nirmal Bang Banking and Financials Sector-Q2FY21 Result Review-26 November 2020 .pdf

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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

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