Jan 24, 2012, 06.42 PM | Source: CNBC-TV18
Be cautious on PSU Banks, says SP Tulsian, sptulsian.com.
SP Tulsian (more)
CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO
Tulsian told CNBC-TV18, “I had been keeping my positive view for last 10 days only on the midcap PSU banking stocks because the kind of run-up we have seen in the private sector bank and the larger PSUs, whether you talk SBI, PNB or maybe the other stocks like Bank of Baroda , Bank of India except for Canara Bank where I was holding quite a positive view that there is still room for the bank to go up.”
He further added, “I am keeping positive view on all other midcap PSU banking stocks like Vijaya Bank , UCO Bank , Allahabad, Andhra, Indian Overseas Bank, Dena Bank, there still I am maintaining my positive view. But the only problem is the kind of run-up we have seen, we all know that we have started January series below 8,000 on Bank Nifty and it has already moved up close to about 23-24% and I am maintaining my negative view for February series. So probably the rally will be seen tomorrow and rally will be seen on the first day of the new series which is on Friday. But thereafter the kind of run-up we have seen in these midcap PSU banking stocks also having happened to the extent of 30%. Even today all of them have been up by 5-7%. So I will be cautious that I won’t be in spite of good results likely to be posted by all these midcap PSU banking, I won’t really be entering into at these levels, probably wait for their prices to correct.
“ United Spirits , Q3 results had been culprit because if you see the consistent EPS of close to about Rs 10 on the first two quarters and that this EPS is slipping to about less than Rs 4, definitely I think it is the victim of that. But I don’t think that correction can really last for a very long time, because if you see the stock has risen from about Rs 450- 675 in the middle of January and that has led to huge trading positions getting created. So probably it is a liquidation of the trading positions which should settle or stop maybe at a level of Rs 550.”
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