InvestorQ : Is it true that large banks like HDFC Bank and ICICI Bank are being downgraded by large FII brokers in India?
Anjana Aiyar made post

Is it true that large banks like HDFC Bank and ICICI Bank are being downgraded by large FII brokers in India?

Answer
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Arya Nanda answered.
5 months ago


A large number of very top FII brokers are downgrading the very banks that led the rally in the last two years. Some of the largest brokerage houses in India have opted to shift from “Overweight” on banks to “Underweight” on Indian banks. Chris Woods of Jefferies has removed ICICI Bank and HDFC Bank from their ex-Japan thematic equity portfolio after almost a decade. Morgan Stanley slashed the weightage of banks in its model portfolio by 500 basis points. Brokerages are turning negative on Indian banks due to reasons like weak loan growth, stress in consumer loans and overall NPA levels worsening. The deactivation of IBC is also seen as credit negative for banks. It is going to hard because banks and financial account for 41% of the Nifty.