Morgan Stanley turns 'cautious' on financial services

Tue Jul 16, 2013 11:28am IST

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010. REUTERS/Amit Dave/Files

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

Reuters Market Eye - Morgan Stanley has changed its view on India's financial services stocks to "cautious" from "in-line", citing the Reserve Bank of India's decision to raise two short-term rates in order to tighten liquidity.

"Our in-line view on the sector was premised on stabilising growth and rates," Morgan Stanley said in a report on Tuesday. "Both are at risk now."

Morgan Stanley adds asset quality can continue to surprise negatively given the weakening economy.

The investment bank likes "strong liability franchises" such as HDFC Bank (HDBK.NS) and says state-owned banks will continue to be hurt, while non-banking financial services companies will face higher funding costs. * Its top avoids are State Bank of India (SBI.NS), Punjab National bank (PNBK.NS) and Axis Bank (AXBK.NS)

(Reporting by Abhishek Vishnoi)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage