According to reports from CNBC TV18, Suresh Ganapathy, Managing Director and Head of Financial Services Research India at Macquarie Capital, highlighted that financial sector fundamentals remain robust despite current market conditions. The analyst emphasized that while tight liquidity may create near-term challenges for financial stocks, the underlying strength of the sector's fundamentals remains intact.
As reported by CNBC TV18, Macquarie Capital expects private banks to deliver around 15% return on equity with healthy asset quality. The preference for private banks over other financial institutions reflects the analyst's confidence in their operational performance and risk management capabilities within the current market environment.
According to the report, Suresh Ganapathy sees current valuations as an opportunity to add bank stocks to investment portfolios. This recommendation suggests that despite tight liquidity conditions, the current market pricing may present attractive entry points for investors seeking exposure to the financial sector through banking stocks.
