Banking & property: Best bets in mkts, says IIFL

With private sector banks doing well & property looking up after the new FSI regulations, Deepesh Pandey of IIFL feels these two sectors are the best bets now.

The involvement of the PMO in Coal India has the optimism of sustainable solutions. India will continue doing very well though it needs to consolidate in the very short term. Below is the edited transcript of the interview. Also watch the accompanying video. Q: After speaking to several investors, are you getting a sense that we might hit a valuation cap sometime soon or do you think when liquidity comes its blind to valuations. A: What we must remember that this rally has taken place from a low base last year. While stocks in some sectors seem to have doubled, they also fell very sharply last year. What we are seeing is a more normalisation of a correction, which happened last year. Incrementally fundamentals are turning around on lot of accounts be it on inflation, interest rates, policy making etc. I would think possibly some of the large cap stocks may hit a valuation cap soon but if you look at the broader market there are lot of opportunities, lot of stocks to be pegged especially sectors which have got overly beaten down last year and that