By Malvika Gurung
Investing.com -- Brokerage major Jefferies has appeared highly bullish on the financial sector for the month of June 2023, citing an overweight stance on other sectors including consumer staples and real estate, to list a few.
Among the brokerage firm’s top stock picks in the Indian financial sector for June, lie private sector lenders ICICI Bank (NS: ICBK ), Axis Bank (NS: AXBK ), IndusInd Bank (NS: INBK ), and financial heavyweights HDFC Life Insurance (NS: HDFL ), Bajaj Finance (NS: BJFN ) and Cholamandalam (NS: CHLA ) Finance.
ICICI Bank is one of Jefferies’ top picks in the financial sector due to its potential to maintain superior growth, enhanced asset quality, and deliver a higher return on equity (ROE).
The brokerage believes that the private lender is well-equipped to take advantage of the growth in Indian bank credit, mainly in markets across metro and near metro areas through deeper market penetration and increased market share.
Thanks to ICICI Bank’s strong digital capabilities, its unsecured lending business has expanded for SME lending and retail loans businesses, leading to improved NIMs.
Another private bank that has been upgraded by the global brokerage among its top picks recently, is Axis Bank.
Jefferies sees the Mumbai-headquartered lender’s franchise is bolstering and is on track to deliver sustainable higher growth and ROEs.
The bank has significantly enhanced its digital platforms and tools, both for customer-facing interactions and back-end operations, which is expected to facilitate liability mobilization, stated the brokerage firm in a report cited by Moneycontrol.
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