Short ICICI Bank, says Ajit Surana

Short ICICI Bank, says Ajit Surana of Dimensional Securities.

Surana told CNBC-TV18, "The banking sector moved up sharply in the series and also in the past few months. I think Reserve Bank of India (RBI) is going to hike interest rates sometime in January - that’s the consensus. Even the fact that the banking stocks under perform when the hike in interest rates take place. It’s a good time to short ICICI Bank and also they have outperformed the markets, so reasonable to short ICICI Bank.’

He further added, “Even ITC, we are recommending a short given the sharp spike in that stock. The fundamental story remains okay – nothing great to justify such high valuations. If you look at the last four-five years there has been no increase in volumes of the cigarettes just price increases which has added to their bottomline. Going forward it will be more difficult to increase the prices sharply for cigarettes.”