We believe the slew of measures taken by the government and the regulator is likely to benefit strong HFCs such as HDFC, which is likely to see improved appetite for its borrowing requirements, which presents the company with an opportunity to optimise its cost of funds. This will likely see less pressure on its pricing, with possibility of improvement of spreads from Q1 levels. Positive business growth fundamentals would support strong earnings growth and help the company sustain its valuation premium as compared to peers. We believe the outlook for HDFC has improved with supportive government...