Banking Stocks: Margin Pressure Seen as Temporary
Speaking to ET Now about the outlook for banks following the rate cut, market expert Nischal Maheshwari struck a reassuring tone.
When asked whether lower rates could weigh on margins, he noted that the impact would not last long. “But that would be temporary. As the reset happens first for the credit side and then slowly the liability side gets reset, so the margin improvement is largely going to start happening you are going to start seeing in the next two quarters… most of the banks were able to maintain a positive or a flat kind of a number as far as NIMs is concerned.”
He added that the key variable now is credit growth. “If the credit growth comes back mildly also and a 15% kind of a number, then the banks have more legs to go from here.”
Kaynes Saga: Valuations Priced to Perfection Face Heat
The conversation quickly shifted to the turbulence around Kaynes Technology and concerns about governance red flags emerging in some mid-cap names.
Maheshwari observed a shift in investor mentality. “After three years of economy on the street, people have started focusing on the balance sheet now… every negative news which comes out market reacts disproportionately… slight negative news, everybody wants to exit the gate at the same time.”He attributed the sharp reactions to overstretched valuations rather than entirely new issues.
Landmark Cars: A Rebound Opportunity?
On the auto distribution side, Landmark Cars has drawn attention amid its partnership developments and new store additions. While Maheshwari clarified he does not formally track the stock, he acknowledged recent challenges.
“Landmark is largely international brands or the super premium segment… it has impacted all of them whether it was the midsized car or the super premium ones,” he said.
However, he pointed out that passenger vehicles are expected to do well in the current and next quarter. “…so this could be a good opportunity to look at it.”
InterGlobe Aviation: More Pain Likely After Sharp Fall
InterGlobe Aviation, parent of IndiGo, has been in the spotlight after regulatory and operational setbacks triggered a 7% slide in its stock. Maheshwari believes the turbulence is far from over.
He cited the company’s refunds and potential penalties as pressure points. “There is going to be definitely what I hear from the interviews… there might be a penalty… they have lost confidence of the flyers, passenger.”
Despite IndiGo’s dominant market share, he warned of long-term implications. “There will be longer term definite impact on InterGlobe… it is a good time to actually take away some profits.”
Insurance & Fintech: Platforms Preferred Over Insurers
Asked whether the recent insurance-sector performance was driven by GST benefits or a genuine turnaround, Maheshwari said the picture remains unclear.
“The jury is still out… let us wait for that,” he commented, adding that his preference continues to lie with digital platforms despite lofty valuations. “They have a very distinct advantage over the general insurance companies. So definitely, I would prefer a platform company.”
IT Stocks: Domestic Institutions Step In as FIIs Sell
Fresh data showed FIIs were net sellers to the tune of $650 million in IT for November, even as the sector rallied nearly 15%.
Maheshwari agreed that domestic institutions may be driving the buying. “It was cheap, cheaply available, and people are shifting away from maybe partially banking and auto to it.”
