HDFC Bank likely to consolidate at this level: Harendra Kumar, Elara Capital

ICICI Bank would tend to outperform HDFC Bank because HDFC Bank has given fabulous returns and they are likely to consolidate at this level, for some point of time.

| Updated: May 02, 2012, 11.02 AM IST

In a chat with ET Now, Harendra Kumar, Head of Institution Broking and Global Research, Elara Capital, shares his views about ICICI Bank and HDFC Bank.

ET Now: In the near term, do you think HDFC Bank still has potential to outperform?

Harendra Kumar: The moment NPA fears resurface, HDFC Bank tends to perform because there is a herding into the stock. ICICI Bank numbers were also very robust. So, our guess is that in the next quarter, ICICI Bank would tend to outperform HDFC Bank because HDFC Bank has given fabulous returns and they are likely to consolidate at this level, for some point of time. If the NPA concerns recede a little bit and there is a rate cut expectation, the rest of the bank will tend to outperform because they have been beaten down significantly.