Positive on Karnataka Bank, avoid SAIL: Ashu Madan

Ashu Madan of Religare Securities told CNBC-TV18, "I do not know why Steel Authority of India (SAIL), because metals, these commodities, if have to be invested, they are invested when they are down and out and when they are cyclically at the lower end of the spectrum. That is the time you have to buy all commodities and particularly metals. We have already seen some kind of a rise and SAIL has risen not because of fundamentals, but because of the overall sector improving and more of a sentiment than anything fundamentally. So I would just say generally, even if it has to be, somebody has to invest particularly in SAIL then probably at a much lower price, probably Rs 49-50 is a price where one can still buy and look for a 15-20 percent return."

"But I do not still think that there is any reason to buy SAIL because I do not see that kind of a spike or excitement even if somebody wants to hold it for a long-term. So I would say avoid but even if somebody wants to buy, buy at a lower level."

"I think Karnataka Bank is outperforming as well if you look at the PSU basket. It was always outperforming, not just purely on fundamentals, it is always in news because of I think as a takeover candidate and every time this stock is called run-away bride because every time the news comes and it does not happen. However, at the same time it keeps performing well. So, I would say it is consolidating well. It is above the averages, if you look at all the pricing averages."

"At a lower level it will be a prudent buy that if you buy at a correction because it is on an up move in the recent times. So, slightly at a lower price or even if somebody buys should have the patience or probably more funds to average it out if it goes lower. So, that would be the strategy to buy Karnataka Bank. However, otherwise I think I hold a positive view on the bank."