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Stock impact report

Investors are scouting an unlikely corner of the stock market: Indian private sector banks [MSNBC.com]

ICICI Bank Limited (IBN) 
Company Research Source: MSNBC.com
A pedestrian walks past a branch of ICICI Bank Ltd. in Mumbai, India, on Saturday, Oct. 19, 2013.Dhiraj Singh | Bloomberg via Getty ImagesBig bank stocks inShares of private sector banks have had a wretched run of late. Investors had already cooled on the sector in recent years due to a confluence of factors:Economic growth which has slowed to a seven-year lowThen came thecoronavirus outbreakThe National Stock Exchange's Nifty banking index has fallen nearly 40% so far this year, underperforming the broaderHDFC BankIndusInd BankKotak Mahindra BankThe higher the price-to-book value ratio, the more expensive the stock.The severity of the sell-off seems excessive to some investors and analysts, who believe shares of large banks, many of which have sturdy balance sheets and a modest exposure to the most susceptible pockets of the economy, are now looking relatively cheap compared to their fundamentals."The markets are concerned about lower loan growth, margins and higher operating costs d Show less Read more
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