What should you do with HDFC Bank and Reliance in 2025? Sandip Sabharwal answers
Sandip Sabharwal, asksandipsabharwal.com, says the valuation derating for HDFC Bank seems to be more or less through. If going forward from next year, they come back to the credit growth trends which they had historically, then there is a realistic possibility that HDFC Bank should do well. Reliance is down almost 30% from the top and there is a realistic possibility it could outperform next year.
This is how the last part of 2024 is going to pan out I guess because a whole lot of cues have dried up. The FII volumes as well have abated and it is going to be very minuscule up until January when the earning season kicks off. Then there will be the budget and it is going to be a hectic calendar year henceforth.
Sandip Sabharwal: Although trading activity ebbs going into the end of December, the markets move have been there historically and that is still possible. But overall there is a greater possibility that given the lack of cues per se in terms of any significant policy decision or any significant news flow coming in or likely to come in over the next couple of weeks, the probability that after this initial sell-off driven by US Fed action or the projection they have given for the year 2025, we should see the markets become range-bound without any significant dip or up move.
How would you summarise the year of 2024, as action-packed as it may be? What have been your biggest learnings as an investor?
Sandip Sabharwal: I do not know what learning could have been there. Just try to be in the sector and stocks which
