Buy, sell or hold? What investors should do after Axis Bank’s Rs 5,700 crore loss

Shares of Axis Bank fell 2% after the lender reported a higher-than-expected loss in Q4 due to the acquisition of Citi’s India retail business. However, brokerages are optimistic about the bank’s performance in the future, with Kotak Institutional Equities maintaining a buy rating and Jefferies noting that valuations are at a 30% discount to ICICI Bank and could narrow given the reducing gap on return on assets and return on equity. Nuvama also retains its buy rating on the bank, citing the potential for a re-rating.