UBS India overweight on private banks

Gautam Chhaochharia, UBS India is overweight on private banks.

Chhaochharia told CNBC-TV18, "Top down we are overweight on banks, but completely on private banks. We still have a stance of avoiding the government banks, because there the valuations adjusted for the stress assets etc. is not necessarily attractive. The private banks which we like are ICICI Bank, Yes Bank, Federal Bank, HDFC Bank and IndusInd Bank. So basically private banks which have some kind of growth story as a key thesis for the stocks are the names which we like."
He further added, "We would recommend playing some high-beta, but not really go down the quality curve. We will recommend playing the larger cap, the higher quality beta names, so more the infra names like L&T and BHEL. Within banks the private banks, not necessarily the defensive names like HDFC Bank, but even towards slightly high-beta names like ICICI Bank or Yes Bank. But definitely play for beta because we are tactically bullish and I think the best way to make money out of that is to play the beta names."