OMCs a short-term play; beware of froth in IPO market: Nitin Raheja

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Key Points

If in the next couple of months, before the election code comes into play, crude remains benign, then they will be good, in fact, for a good part of the next year..

Nitin Raheja: Nobody can argue that PSU banks valuations are cheap and they were cheap with reason primarily because their capital adequacy is among the lowest if you compare it with their private sector peers..

Also, clearly they have very strong liability franchises and in a time where most banks have been struggling to add their deposit and CASA base, they are well placed and there are legs in that rally and the broad direction that the government has set for them makes them look yet attractive...

They have shown the fact that they do not have a lot of the overhang that exists for generic pharma and hence they get valued at more attractive prices than even the generic pharma business...

Of course, the business does not have the same kind of economics as you would have in Indian pharma or generics but the valuation stacked up in their favour and hence, we are seeing the API companies show a good rally...

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