Morgan Stanley turns 'overweight' on private banks

Mon Mar 10, 2014 11:02am IST

An employee arranges currency notes at a cash counter inside a bank in New Delhi June 8, 2010. REUTERS/Mukesh Gupta/Files

An employee arranges currency notes at a cash counter inside a bank in New Delhi June 8, 2010.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

Stocks

   

Reuters Market Eye - Morgan Stanley turns "overweight" across all private sector lenders in India, after previously having that stance for only HDFC Bank(HDBK.NS), Housing Development Finance Corp(HDFC.NS), ICICI Bank(ICBK.NS), and Axis Bank(AXBK.NS).

The investment bank, in a report dated March 10, says it expects a re-rating across the sector as the bad-loan cycle could be "close to the end" if the economy remains stable.

Morgan Stanley forecasts an improving economy, as indicated by a narrowing current account deficit and a stable currency, while also noting that liquidity has improved and real deposit rates have turned positive.

Private sector lenders extend gains: Bank Nifty is up 1.1 percent at 9:13 a.m., helping the broader Nifty briefly hit a record high earlier in the session.

Expectations for an improving economy and a pause in the RBI's rate-hiking campaign have sparked a rally in the sector. After falling 10 percent in January, the NSE bank sub-index has surged 5.2 percent in February and 11.7 percent so far in March.

The Sensex briefly hits a record high on the back of continued strong foreign buying in blue chips such as HDFC Bank, but edges lower soon afterwards on profit-taking and because of falls in regional shares.

(Reporting by Indulal P)

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

Sino-Indian Ties

REUTERS SHOWCASE

Eyeing Stocks

Eyeing Stocks

Interview - EPFO chief urges green light to buy stocks  Full Article 

Stimulus Reports

Stimulus Reports

China cenbank injects $81 bln into major banks to support economy - reports  Full Article 

Ranbaxy Investigation

Ranbaxy Investigation

Ranbaxy says U.S. authorities seek information on pricing data.  Full Article 

Monsoon Update

Monsoon Update

Delayed retreat of monsoon rains to start this weekend  Full Article 

Financing Deal

Financing Deal

IndiGo agrees $2.6 billion aircraft finance deal with China's ICBC  Full Article 

Fed Policy Meeting

Fed Policy Meeting

Fed could hint on rate-hike plans as it prepares for policy turn  Full Article 

Grim Outlook

Grim Outlook

Sony deepens loss estimate on struggling smartphone business  Full Article 

Sugar Surplus

Sugar Surplus

India to produce surplus sugar for fifth straight year - industry body  Full Article 

Business Sentiment

Business Sentiment

China, Singapore slowdown weigh on Q3 Asia business sentiment   Full Article 

Reuters India Mobile

Reuters India Mobile

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