Buy banking stocks on dip: Dhawan

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Buy banking stocks on dip, says Sajiv Dhawan , JV Capital Services.

Dhawan told CNBC-TV18, "We are strictly positioned in the banking sector and for us it's an investment call; you do buy the dips. The stocks corrected maybe 10-15% plus from their highs. The bank index which we always look at has bounced back more than 10% from its recent lows and its doing very well. I think there is negative news with higher interest rates coming in the next couple of quarters probably being factored into some degree. I think sector has been re-looked at by other institutions, HNIs and traders across the board over last several months and any dips you are seeing are going to be bought into. It's still full of potential of mergers and acquisitions, you have seen ministers discuss their State banks they would like bring their down holding into that stock and you have seen private sector banks contract like ICICI Bank , HDFC Bank , several buy recommendations. So across the board whether it's a PSU, private banks for us it's an investment call and you buy on any sharp decline as you saw recently."