Pain for NBFCs could last till February, says Sandeep Shenoy

Sonia: Your views on non banking financial companies (NBFCs)?

A: The systemic pressure is still not visible asset. If you speak to a lot of people, some of them are putting on a brave face. It could be bravado or maybe even in a state of denial.

However, the pain point for NBFCs could be out in open, somewhere in January or February and by that time it may be too late for anybody to exit because market generally re-alliance quite fast. So for at least a couple of months NBFCs - one can either sell and get out and wait for better or more opportune entry points or ignore the sector till February.Sonia: Any thoughts on how to approach heavyweights like Infosys now?

A: In this kind of a situation the overhang on heavyweight IT because of the happening in the US seem to be much more muted or a child's play compared to the headwinds what most of the domestic sectors are going to be facing and you have got multi tens of billions dollar marketcap place. So somewhere or the other the big ticket or the large ticket buying will happen towards those sectors where the impact is discernable or the least impact on the negative side and this sector falls in that category. Therefore, it is a question of time before this sector manages to recover a lot of the losses, what has happened, because there have been multiple reasons other than systemic reasons for them. I think it is going to be stabilising, if not outperforming sector.

For entire interview, watch accompanying video.