Avoid banking space, says Gopi Suvanam

Gopi Suvanam, founder of InvestWorks told CNBC-TV18, "If one looks at fund managers, they are allocating more and more to State Bank of India (SBI) which is slightly positive for the index. If one looks at other banks like ICICI Bank, Axis Bank, YES Bank etc, they are taking a huge beating. Even Punjab National Bank (PNB) for instance has tried to reduce its non-performing assets (NPAs) and has taken a big beating. So maybe I would be slightly selective at this moment."

"Maybe if somebody wants to build a portfolio, I will look at some selective stocks like PNB but avoid banking at the moment and wait for the sell-off to get itself done with because there is a lot of complacency build over the last couple of days. Yesterday and day before yesterday there were a lot of short positions that got unwound, there were a lot of short put options in 6,000 and 6,100 strike. So this sell-off could continue for some more time at least till expiry. So I would wait it out at the moment," he said.