Bank of Baroda valuation pick, says Vineet Bhatnagar

Vineet Bhatnagar, MD at Phillip Capital told CNBC-TV18, "The banking sector continues to remain a bit of quandary primarily because there is a loud screaming from the rooftop about the non-performing assets (NPA), there are central bankers and Delhi talking about immediate capitalisation of the public sector undertakings (PSU) banks. So, fundamentally there is that concern and overhang on what that NPA will be or what is the seriousness or the urgency in the capitalisation that has been demanded."

"On the technical side which is the short term trading approach we may have towards the market there is some bounce back that we are seeing in names like ICICI Bank, HDFC Bank was always nice fundamentally, private sector banks like YES Bank was looking okay for some time now. So there is that mixed bag of an approach. Bank of Baroda (BoB) looks great as a valuation pickup at this point in time. So, it is a mixed bag, I would imagine that a sustained follow through in Nifty's strength beyond 8500 has to be only with the participation of Bank Nifty, if not there should be sideways consolidation again," he said.