Sell IndusInd Bank, buy ICICI Bank: Gopi Suvanam

Gopi Suvanam, Founder of InvestWorks told CNBC-TV18, "I think the 16th day will be big for private banks when we come with Axis Bank and IndusInd bank results. But if you compare smaller sector private banks, IndusInd Bank is gaining a lot more than ICICI Bank.”

“It has shown some growth over the past but the valuation seems to be exorbitant compared to ICICI Bank. So there is a huge conglomerate discount that is going on in ICICI Bank, which I think should correct because there are benefits of having a diversified business. It can be able to sustain even in terms of volatility of interest rates or liquidity. So from that perspective it is looking good from a valuations perspective. To some of our clients we are suggesting a pair trade, sell IndusInd Bank and buy ICICI Bank at the current levels,” he added.