Andrew Holland expects a lot of volatility in market; not surpised HDFC Bank is cheap
Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies LLP, says “HDFC Bank is cheaper, or is at a similar level to where it was three years ago, for a reason. And that is because the market is still waiting to see how the merger pans out. That will continue to be a wait and watch approach by the market before it gives a thumbs up to the merger. And of course, I have just been looking at some data which is showing credit growth is starting to slow.”
Are you also digging out within the PSU pack because that clearly seems to be the flavour of late?
No, it is the whole. Let us take the banking sector, it has been a laggard now for some time. So, it is not surprising that you get some kind of a relief rally or rally in the index. But it is not compelling. It does not give me the confidence to say that we are not going to drift down over the next few weeks. There are a lot of events ahead of us. There are a lot of messy global factors which are still playing out, whether it is China, Japan, and the Fed, with their policy coming this month. So, yes I expect a lot more volatility.
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Of course, here in India, we have our own inflation/monsoon/El Nino to face. And that is something that the market has been getting into grips with. That is why we saw the market fall quite a bit last month. That theme will continue to play, at least until it starts raining.
Samir Arora was talking about how HDFC Bank is perhaps the best contra bet to take, given that the stock is
