Where is Indian banking headed?

With 29 of the 39 banking stocks posting an average loss of 20% for the rolling 12 months, one wonders “where’s the Indian banking headed?” Banking is a top sector in India and the very fact that despite bleeding sector components NSEBANK has held ground makes it more critical for review. A bottoming banking sector could make the difference between a positive or negative 2012.
What keeps the Banking Index a “believer” while 60% of its house is on fire? Investors might take a while to understand divergence, but as we mentioned prior, markets are not finicky, they understand and express divergence. Market knows that a part of it will outperform and another section of it will underperform.
Before we analyze the sector, let’s look at how performance based ranking (Jiseki cycles) delivered.
Enjoy the latest ALPHA Banking sector review.