IDBI Bank stake sale will be taken positively by the market, says SP Tulsian

Life Insurance Corporation (LIC) is set to buy the government's 51 percent stake in IDBI Bank, sources told CNBC-TV18 on Saturday.

Talking about IDBI Bank stake sale, stock market guru SP Tulsian said, “This will be seen positive for IDBI Bank because there had been a lot of controversy or may be the angles being examined by the investors whether it will be bad on part of the LIC or not and whether it will be seen positive for the IDBI Bank or not."

He added further, “LIC foraying into the bank and they are already in housing finance is seen very positive. They have that kind of bandwidth, they have a good team of wealth management and all sort of things. So there is no harm in foraying into the bank by LIC, but structuring if would have been better that would have liked by the market. But I am expecting that probably this would be taken as positive for IDBI Bank also by the market.”

Talking about Tata Motors, Tulsian said, “I don’t think that market will be too excited with this roadmap having given for next two to three years because market will definitely wanting to demonstrate or show the company to earn in every quarterly results. If you really take a call now at the current level of Rs 308 or 310 the share has seen a good rise in this last maybe two to three weeks. I won’t be taking a call and I won’t be surprised to see some profit booking coming in because things are not very exciting and the capex amount which has been stated in the plans for the next two- three years may not also get liked by the market.”

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