Nandan Chakraborty neutral to underweight on banking space

Nandan Chakraborty, MD-Institutional Equity Research, Axis Capital told CNBC-TV18, "For the last one year, banks versus IT trade has been the single most important factor for most institutional fund managers. What we have done in our model portfolio lately is basically cut the weight across banks, so, proportionately across all banks. We have kept a little bit on public sector undertaking (PSU) banks not the largest one because valuations are simply so low."

"Proportionately we have cut across all private sector banks also and the reason for that is that we wanted to make enough space for pharmaceuticals and all the other exporters like the auto exporters. So, now I would be neutral to underweight in banking from an overweight position earlier," he said.

Also Read: Bank of Maharashtra to sell Rs 520cr worth of NPAs