Sajiv Dhawan, JV Capital Services is of the views on banking stocks.
Dhawan told CNBC-TV18, " SBI is one stock we have liked, we had said at Rs 2300-2400 it's a good buy, it slipped 5-7% more and has bounced back. Again a key take with the market is that the Bank Nifty over the last couple of months is slightly higher and it has bounced back quite smartly. So despite over negative newsflow with the banks, with higher interest rates, the markets and institution and traders are still buying banking stocks on corrections."
He further added, " Yes Bank which has performed quite well and SBI seems to have formed its bottom. So that is one sector where we would advice traders to look at and buy some options and investors to continue to accumulate because the bad news can only continue for another 3-6 months more for the banking stocks. After that we really do feel that the interest rate cycle would have peaked out and it is then that you will see substantial rally in the markets and that again will be led by lot of the banking stocks."
