Market veteran SP Tulsian discusses stocks that were in the news today

Market veteran SP Tulsian of sptulsian.com in a freewheeling chat with CNBC-TV18's Anuj Singhal and Sonia Shenoy analyses the fundamental side of the market as well as specific stocks and sectors.

Talking about the rally in banks he said, “I think if the FII are again seeing taking an entry in the HDFC’s table because you need to have the comfort on the HDFC and other corporate lending banks maybe like ICICI Bank, Axis Bank or maybe HDFC Bank or maybe Kotak Bank. So yes the short covering is definitely seen there, but this is all led by the huge renewed buying coupled with the buying maybe by the FIIs also once we have seen the good recovery having taken place in US and European market.”

Speaking about Bajaj Finance, Tulsian pointed out, “I will restrict my view on the stock with respect to the call given by the management. First two or three things that credit cost is going to rise for the company may be 80-90 basis point that is one negative seen.

"Secondly, maybe from August or September things will start improving at their end in respect to the credit growth. Thirdly, I don’t know how much they are equipped for the recovery part of this because next couple of months also seem to be quite crucial so these three things seem to be quite negative and bad.”

He added, “On a fundamental basis and going by the management commentary you only have the hopes being given by the management, which may not fructify so it is better to play safe and in this environment. There is no point in talking of the credit growth or the deposit growth, but more of the price to book parameter and the credit cost seen rising. And both the things are seen to be quite high and alarming for Bajaj Finance so probably, I will wait for the stock to allow consolidation at least for a week to 10 days and it should not break the level of Rs 2,000 and once that happens that rules for 6-7 days then only I will be able to take a call on the stock as buy, otherwise I would prefer to go and buy other stocks like HDFC Bank, Axis Bank or ICICI Bank.

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