Market rout: Financial sector stocks are not attractive yet, say analysts

Marque stocks are available at significantly lower valuations, but near-term risks may not be fully priced in

The recent meltdown in valuations of some of the top names in the financial sector — such as the HDFC twins (HDFC Limited and HDFC Bank), Bajaj Finance, ICICI Bank, Axis Bank and State Bank of India (SBI) — has rekindled investor interest in the banking and financial services space. As most of these stocks now trade closer to their 2008 levels, when the world was hit by the global financial crisis, there seems to be a consensus among brokerages that they have become attractive. But, if investors look deeper, beyond valuations, multiple concerns cloud over these stocks. Analysts say