Positive on HDFC Bank: Shashank Khade

In a chat with ET Now, Shashank Khade, Executive Vice President-Portfolio Management Services, Kotak Securities, gives his views on HDFC Bank.

How does one approach an HDFC Bank right now?

The leadership within the market is changing and you have a situation where Tata Motors, ITC, HDFC Bank, they are actually making lifetime highs while you also have a case of Reliance Industries, one of the index heavyweights or Infosys for that matter really limping right now.

So you have this huge disconnect in terms of how various large index heavyweights are really performing. So if you look at the trend between Hindustan Lever, ITC, HDFC Bank or a Tata Motors, clearly the market is saying that we will invest where we see visibility of earnings where we are reasonably sure that the earnings growth will come over the next 1 to 2 years and that is where money is really flowing in.

That is the reason why, even if these stocks are expensive, they actually are getting into more expensive sort of a territory and people are not really willing to really take risk on the other side and hence there is a huge gap between the steady performers and the cyclicals which people would tend to really buy when the risk taking abilities are much higher. So the leadership is clearly changing in the markets that one can really see as a trend.