Reuters Market Eye - Jefferies says fundamentals for India's banking sector are unlikely to change much given "tepid" loan and deposit growth, "range-bound" net interest margins and "weak" asset quality.
"The reason to own/sell a stock then boils down to valuations," Jefferies says in a report titled "Initiating on India Banks: Going Nowhere" and dated April 5.
Jefferies starts HDFC Bank Ltd
Assigns "hold" ratings to Axis Bank Ltd
Jefferies believes banks with strong branch expansion such as HDFC Bank, ICICI, and Axis could face smaller problems.
(Reporting by Manoj Dharra)