In a sea of green, one sector turned red today: private banks.
While metals danced and realty stocks partied like it was 2008, Kotak Mahindra Bank, Tata Motors (financial exposure), and even HDFC twins looked a little grumpy.
Kotak fell 1.1%, Tata Motors dropped 1.24%, and even Cipla got dragged into the red zone.
🏦 Why are private banks sulking?
- Valuation
- fatigue: Most private banks are trading at P/B multiples of 2–3x.
- Mild pressure on NIMs: RBI rate pause means lending spreads tighten.
- Shift in capital: Investors rotating money into PSU banks, real estate, metals, and defence.
- Regulatory concerns: RBI recently flagged
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