Due to multiple rate hikes by RBI during this year, most of the Indian financial stocks have got beaten . Even large cap bank stocks are trading almost 40% below their peaks. Does it mean a big doom for the financial services sector?.. It is definitely a bad patch . With more than 50% of the population being young and raring to go, there is a high probability that we have a lot of potential for this sector. When compared to developed economies , the market cap of financial services sector looks very small. These may be testing times but I feel that there is a huge potential for this in the long run.
This presentation http://specials.rediff.com/money/2008/jul/31sli1.htm ,on rediff is an ample proof for this is in one sense. Most of the companies in the list are from financials sector.