Private banks a challenge to pick; like ONGC: Quantum Advisors

IV Subramaniam, MD & CIO of Quantum Advisors and Director of Quantum AMC in an interview to CNBC-TV18 spoke on the rationale for picking stocks and sectors for their funds.

According to him banks need to have both good valuations as well as good business and asset quality, which makes it a challenge to select private sector banks but there are some public sector banks which still have these these qualities even after accounting for bad assets.

From the private sector space, one could look at banks where valuations are not rich and have good asset quality.

For the oil and gas space, although it is difficult to predict the direction of crude prices one could go with an assumption and gauge company performances accordingly. He likes ONGC which according to him still looks inexpensive from a valuations perspective with enough triggers to unlock value in it.Watch video, for the entire interview