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Deven Choksey, MD, DRChoksey Finserv (fundamental)
On HDFC Bank
On the fundamental side, things are looking pretty set as far as both HDFC Bank and HDB Financials are concerned. HDB Financials largely caters to the MSME segment as well as the individual segment of loans in the NBFC packet, whereas HDFC Bank is a composite mixture of all of its portfolios. So, from a point of view of looking at the complementary strength that it could bring post listing, it could be on one or two accounts. Importantly, the money which is getting released for sale, which is about ₹10,000 crore, would probably help HDFC Bank, in a way, to probably expand their business, which is significant in terms of their growth rate is somewhere around 17, 18% at this point of time, or maybe 19% and similar situation could be with HDB Financials – they get a chance to expand their books, which probably they remain looking compromised when you compare with Baja Finance, I think this institution deserves to be growing in the same territory. So results are possibly not as good as Bajaj Finance has, and this fiscal year, there is a good possibility that they would get a better opportunity to capitalise on themselves. So, yes, for immediate benefit, HDFC Bank will reflect the valuations of HDB Financials at the same time. So we remain distinctly positive. With this IPO clearing, the price will probably go up from here.
On ABFRL
One important point, with the hands changing, we are to see stronger performance coming from this company, because the new investors in particular are likely to be little bit more assertive, as far as ABFRL is concerned. So mainly, I’m relatively more positive on prospect side, than to talk about anything on the fundamentals at this point of time.