Will there be no earnings in these shares? Goldman Sachs said – the golden days are gone.

Banking and financial stocks, which have been providing good returns to investors in the stock market, may underperform in the coming days. Goldman Sachs has expressed this concern. Goldman estimates that the good days of banking and financial sector stocks are over. In the near future, these shares may not perform well for various reasons.

Goldman Ratings on Major Stocks

Global brokerage firm Goldman Sachs has downgraded many stocks in its review of Indian banks and financial companies. Goldman Sachs has downgraded the largest public sector bank SBI and the second largest private sector bank ICICI Bank. However, on the other hand, it has maintained a buy rating for the largest Indian bank HDFC Bank and upgraded Bajaj Finance.

The target also decreased along with the rating.

SBI is now rated ‘Buy to Neutral’ by Goldman Sachs. It has been given a price target of Rs 741, which is lower than the current price. ICICI Bank has also received a ‘Buy to Neutral’ rating and a target of Rs 1,086, which is around the current market price. HDFC Bank, Axis Bank and Kotak Mahindra Bank have received ‘Buy’ ratings.

The target of these shares also decreased.

Goldman Sachs has cut the target to Rs 1,915 for HDFC Bank, from over Rs 2,000 earlier. However, the new target price is well above the current market price of Rs 1,421. Similarly, Axis Bank and Kotak Mahindra Bank have got new targets of Rs 1,194 and Rs 2,116 respectively. Both of these have also been reduced in target but higher than the current price. Bajaj Finance has got a target of Rs 6,815 with ‘Sell to Neutral’ rating.

For this reason, Goldman is afraid.

Goldman Sachs says the golden days of the banking and financial sector, the era of Goldilocks, are over. The Goldilocks period is the period when strong growth is recorded and good profits are earned. Goldman Sachs believes banking and financial stocks face near-term risks such as margin pressures and rising consumer borrowing.

Disclaimer: The information provided here is for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing. ABPLive.com never advises anyone to invest money.

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