Prefer private sector banks: Phani Sekhar

Phani Sekhar of Karvy Stock Broking told CNBC-TV18, "I don’t think fundamentally there is much wrong with private sector banks. There was a big asset quality surprise there but having said that more or less things seem to be in control not just for ICICI Bank but for the rest of the large private sector banks. To that extent I don’t see much of an issue at least from medium to long term perspective. Having said that since many of these banks have ran up persistently over the last three to four months at the first sign of trouble or volatility it is not surprising that you saw a correction."

"Even now there is some kind of an underperformance which will be covered over the next three to four months. So, it is a good opportunity for investors to look at this entire basket because this is one sector in the market that will still give you relatively very healthy earnings and the valuations are not very demanding," he added.