Citi selling stake in HDFC is a positive news: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Head-Institutional Clients Group, Asit C. Mehta Investment Intermediates Ltd., shares his views on various stocks.

ET Now: The big story is Citi Group looking at selling their entire 9.8% stake in HDFC Ltd. A clutch of investors are ready to invest in HDFC Ltd. after such a strong appreciation in last five or six years. Is that very positive for the Indian financial sector?

Prakash Diwan: It serves the purpose of both the institution that is exiting as well as the ones who are looking at getting in. This is because we have emerged as much stronger market relative to our Asian and European peers.

Moreover, from a growth perspective the opportunity that housing finance as an area offers in India is immense and HDFC is a marquee player. So, there is undoubtedly no question on them being able to lead the sector. So, it is a win-win and it should be taken as a positive.