It is very concerning to note that across sectors India is becoming a oligolopy.Telecom industry is poster boy of oligoloply where five companies got decimated and countless jobs lost. Banking has been one of the fastest growing industry but it is interesting to find that only three constituent account for around 65% of an index.
conclusion
- If you are trading bank nifty you are basically taking a call on three stocks
- The more succesfull and big a bank becomes the more it will automate ( hdfc bank has increased the size of Balancesheet by more than 20% in last one year but the headcount is down by 10%)
