InvestorQ : I am holding HDFC bank and ICICI bank at price 935 and 337 respectively.can I hold it both for 1 year & I am expecting around 15 per returns in a year. Market looks weak is it bad idea to holds the bank stks ? view pls. Please share valuable views.
Adarsha made post

I am holding HDFC bank and ICICI bank at price 935 and 337 respectively.can I hold it both for 1 year & I am expecting around 15 per returns in a year. Market looks weak is it bad idea to holds the bank stks ? view pls. Please share valuable views.

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Vishal answered.
8 months ago
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First thing is don't invest your all money in one sector (You selected both banking stock). Both company's selected by you are fundamentally strong but due to pandemic there is uncertainty in short period so hold this both stock for above 3 years you will get better returns. (It's my view)

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Adarsha answered.
8 months ago
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Thanks for response...What would be the best option, ...book the loss ?

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8 months ago
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Yes hold prices will high in upcoming period
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Pawan Kumar answered.
8 months ago
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HDFC bank has already rewarded shareholders immensely for holding it long term. It has appreciated from Rs 50 (price adjusted) in 2004 to 1300 in 2016 CMP. HDFC Bank had been growing at 30+ percent for many years and hence had commanded high PE multiples in the market. Since last year its growth momentum has slowed down or it has climbed down to below 30% growth.

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Dilmini Mercia answered.
8 months ago
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Both the stocks have corrected from this price. Of the two stocks, HDFC looks fundamental better with lower asset quality problems compared to ICICI Bank. The problem is with the latest IBC suspension for one year. That means the banks cannot initiate insolvency proceedings against any of the defaulters till June next year. That is going to be credit negative for most of the banks. It is best to stay away from banks for now as the extension of lockdown is going to put further pressure on the financial so banks and lead to an escalation of NPAs. You must look to stay out o banks for now.

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