Buy PSU banking stocks on dip: Motilal Oswal

Buy PSU banking stocks on dip, says Manish Sonthalia, VP Fund Manager, Motilal Oswal AMC.

Sonthalia told CNBC-TV18, "We are clear buyers in the banking space and also in the PSU banking space. I think the recent weakness is on account of apprehension and deteriorating asset quality going future, because we are faced with high interest rates scenario. Whether that is going to happen or not because at this point in time everybody is built in reduced Non Performing Asset (NPA), gross NPA ratio and net NPA ratio."
He further added, "Further, there is added apprehension that telecom sector exposures could see increased NPAs. I think whether both these factors would be known in the next 2-3 quarters, at this point in time I don