Marcellus Investment Managers on Friday said that potential Reserve Bank of India (RBI) rate hike in October will be the biggest challenge for financials.
In an interview to CNBC-TV18, Saurabh Mukherjea, founder, said, "We have been saying this for long time on your channel that we are entering that phase in our country where rates are going up, the currency is under pressure, liquidity is tightening and that is a broad backdrop. I am not under playing the Dewan Housing Finance Corporation paper being sold by DSP at 11 percent, but I am not so sure how much importance we should attach to that."
"People are holding non-banking finance companies (NBFC), housing finance companies (HFC), private bank stocks at 4, 5, 6, 7, 8 times prices to book and there is no earthy rationale for that. Because of these specifics jolts, like IL&FS and Dewan, if people sort of come to their sense so much the better, but the weightage of financials in the Nifty especially, wholesale funding financials is worrisome," he added.
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