Vibhav Kapoor of IL&FS Investmart is of the view that banking space is looking little bit better than the rest of the picture.
Kapoor told CNBC-TV18, "Banks certainly look little bit better than the rest of the picture. They have gone up a lot; valuations are not as cheap as they were. But still valuations are far less expensive than they are in many of the other sectors in the market, so to that extent they are better. They have managed their positions very well. They have managed their profitability; they have managed their net interest margins."
He further added, "I think there will be a little bit of concern on net interest margins being squeezed, a little bit as lending rates come down for the short term and if the global economy goes bad again you might have a problem on NPAs. But all in all I think it is a sector and particularly the public sector banks, which even in a down market would probably would prove to be more defensive than many of the other stocks which have really run up to 25-30 times valuations and have been in a bad market trend can really get hammered."
