BofA, CLSA think Axis, IndusInd Bank are ripe for re-rating; here's why

Analysts at BofA Securities have upgraded Axis Bank, IndusInd Bank, and State Bank of India (SBI) on a "surprisingly" resilient asset quality outlook, and reasonable valuations

Shares of Axis Bank and IndusInd Bank Bank have, so far, outperformed the benchmark S&P BSE Sensex in calendar year 2021, on the back of consistent foreign capital inflow and hopes of sustainable economic recovery. 

Till Thursday, January 7, shares of Axis Bank have rallied 8 per cent while those of IndusInd Bank have jumped 6 per cent on the BSE. In comparison, the S&P BSE Sensex is up 0.72 per cent, ACE Equity data show.And this outperformance is likely to continue.
 

Analysts at BofA Securities have "turned positive" on the Indian banking sector, and have upgraded Axis Bank,