SBI, ICICI Bank, Axis Bank and HDFC Bank are Nomura stock picks today
SBI in PSB space, ICICI Bank, Axis Bank and HDFC Bank in Private Banking segment are Nomura recommendations today. Nomura remains positive on Financials as they think the asset quality impact of COVID-19 may not meaningfully spill over beyond the first half of CY21F and investors will gain confidence on the asset quality cycle. Nomura sees a good chance for credit cost undershooting for FY22F; hence, they think the earnings upgrade cycle will continue.
Nomura sees further scope for re-rating ICICI Bank, Axis Bank as ROE normalizes, and HDFC Bank remains a major compounder: Reuters