Friday, 14 November 2008

Hold Axis Bank for long term: R Shah

Rajen Shah of Angel Broking is of the view that one can hold Axis Bank with long term perspective.

Shah told CNBC-TV18, "Fundamentally Axis Bank looks okay at the current levels; it’s quoting at about ten times March ’10 earnings and about 1.5 times March ’10 book value. But the FII (Foreign Institutional Investor) holding in this bank is about 28%. So in the short-term it could be a drag on the stock because some of the FIIs continue to do relentless selling and that could see even Axis Bank stock also been dumped. So fundamentally its fine, one can hold on for a longer period of time but in the short-term on account of high FII holding maybe the stock could drift a little from here."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.