Banking sector may outperform, says Sukahni

Sukhani told CNBC-TV18, “The banking sector will outperform. That’s my theme for the last 15 days that the banks are ready to move up and in all fairness we have been lucky that that’s exactly what’s happening. Apart from the banking sector the IT index which is now taking a pause or a rest should join, also should the oil and gas components ONGC as well as Reliance which I think will be a surprise to many of us. But it should join the party. So that’s the three major components. FMCG and pharma are probably going to be laid back.”

He further added, “Now it’s not short covering. My sense is that it’s real buying that’s taking place. It’s not short covering just. So if real buying is taking place and that applies for the Nifty also, people who are buying and I think smart money is buying again. Smart money is not expecting to make a 100-200 point gain. That would be too shallow gains to enter the market in large volumes. So what’s probably happening is that a big move is still expected in the Bank Nifty and that big move will probably come in HDFC Bank , State Bank, ICICI Bank and Axis Bank. The four large components of the Bank Nifty should all go up.”