In the last two years, probably each segment of the financial services have gone through a scrutiny by the RBI. Yes, it did create short term headwinds for many segments as there was some bit of the tightening and of course the episode in which companies were banned also happened. But three simple questions, is a sector like financial services better placed after the clean up by RBI. Second, if an economy like India is growing, can it happen that this sector does not does not grow? Third, probably to some extent the reason for why these stocks have underperformed, can FPI stay away from these stocks and when they come back. There is a high probability that all answers to three questions go in favor of the stocks and the outlook is improving.
