Don’t expect HDFC Bank to correct further, says market expert SP Tulsian

Stock market guru SP Tulsian of sptulsian.com does not expect HDFC Bank to correct further.

“I agree that stress is seen reflected in the results of HDFC Bank, but this has to be read in the context that the HDFC family, the three stocks, HDFC Limited, HDFC Bank and HDFC AMC, have risen in July. Maybe that exuberance also is getting corrected now," he observed.

Added Tulsian: "In fact, you have seen HDFC AMC is also down by 5 percent, HDFC Limited is down by 3-4 percent. So I think that the correction, the desired correction in HDFC table, seems to have come in and I do not think that much of the correction will be seen in HDFC Limited and HDFC Bank. One can remain cautious on HDFC AMC, but whatever stress or whatever the indications, or whatever the apprehension which you are seeing in HDFC Bank, is seen to have factored in fully,” he added.

Commenting on Zee Entertainment, the market expert said the deadline indicated by the management to conclude the deal had already passed. "So let us hope that things will get resolved. With the kind of news flows that we are getting that the group is monetising their stakes in some of the infrastructure projects, maybe in their financial projects also, they should be able to mobilise around Rs 4,000-5,000 crore. The news on the street is that probably the Dish TV deal also has happened,” he pointed out.

On the real estate sector schemes coming under scanner from NHB, Tulsian said, “It is a good move, in fact I would say that it is a belated move. I think it is a very good move for strengthening the housing finance companies and that will probably be strengthening the stronger players, maybe like LIC Housing, HDFC and Indiabulls Housing Finance.”