Chola Securities Backs PSU Banks, Cautious on Private Lenders & Midcap Cement

• Dharmesh Kant of Chola Securities sees a leadership shift towards PSU banks due to their stronger advances growth and improving asset quality.
• Private sector banks are still stabilizing, with ICICI Bank's Q3FY26 results being muted and HDFC Bank's performance looking better due to other income growth.
• Kant expects HDFC Bank stock to remain subdued until Q4FY26 clarity emerges, especially regarding the December rate cut impact.
• Bank of India is highlighted as a strong performer within PSU banks, having met its target quickly.
• Chola Securities is constructive on the cement sector, favoring large-cap leaders like Ambuja Cements over expensive mid- and small-cap names.

Why It Matters: Chola Securities recommends PSU banks and large-cap cement stocks, while being cautious on private banks and midcap cement.