The underperformance of the financial pack this year has left influential brokerage CLSA surprised.
The Nifty Financial Services index is up 8.1 per cent on a year-to-date basis. In comparison, the Nifty50 index has gained 9.7 per cent. The underperformance was even starker until recently, with financial stocks catching up in the past one week.
“This underperformance of financials in India may be seen as odd, since India has many high-quality, respected names in the sector. Moreover, Indian banks are coming out of a multi-year credit cycle, which should lower credit costs drastically,” said Vikash Kumar Jain, equity strategist at CLSA in