Raychaudhuri underweight on banking sector

Manishi Raychaudhuri of UBS Securities is underweight on banking sector.

Raychaudhuri told CNBC-TV18, "We have been underweight on the interest rate sensitive as a whole and we retain that stance in our model portfolio. We are underweight on banks and we are just about neutral on the property sector. As long as we have double digit inflation situation and global commodity prices do not recede; we are likely to have an upward pressure on the interest rates. I think in an election year, inflation is a far more serious issue in front of the government and Reserve Bank of India (RBI) than growth. So it’s quite possible that the government and RBI may chose to sacrifice few percentage points of growth to curtail inflation and as a consequence we could see some more round of liquidity by the Central Bank. So in that situation I think the interest rates sensitive are just well ignored at this point in time."

Disclosure: Neither analyst, his dependent family members, his employers nor UBS Securities have any interest or position in the above stock.