HDFC Bank, Bajaj Fin results encouraging; crude nearing $100/bbl risk for Indian equities: Avendus Capital

HDFC Bank and Bajaj Finance Q3FY22 results have been encouraging, said Andrew Holland, chief executive officer of Avendus Capital Public Markets Alternate Strategies, on Wednesday, adding that a few select stocks could get rerated if oil hits USD 100 per barrel.

He said, “There might be a better run-up in financials in a very short-term and of course the union budget coming up and that would keep the market optimism at a high.”

Speaking in an interview to CNBC-TV18, he said, “Forecast of USD 100 per bbl (on crude) is on its way, which is scary for inflation and also not great for India as a country. If that’s the case then there is a lot more room for the sector (oil and gas) to continue to move higher and there would be rerating if $100/bbl forecast, which I keep seeing becomes a reality, but I am not saying that that would be great for the markets globally or locally.”