Prefer HDFC Bank, says Dhirendra Tiwari

Dhirendra Tiwari, Head of Research Antique Institutional Equities told CNBC-TV18, "In the financial sector the preference should be for quality and safer bets. Today in the environment that we are in, there is possibility of credit risk for every bank and there is a slowdown risk in terms of the loan growth etc. So, I think while a lot of these things will look inexpensive and cheap in the sense of price to book sort of valuations."

"I think if one looks at the historical performance and the valuation pattern of most of the banking stocks in last 10-15 years, one will always find that they generally tend to derate in the slowing down economy and which essentially keeps on hitting their NPAs. That is essentially the biggest risk for some of these banks. Even the environment of tight liquidity further squeezes their profitability. So, prefer some of the large cap quality banking stocks like HDFC Bank at this point in time," he added.