Mahesh Patil, co-Chief Investment Officer at Birla Sun Life AMC says the worst in quarterly earnings is over and one could see a 15-16 percent earnings growth next year.
The allocation for the rural sector in the Budget has nearly doubled and this in turn will lead to consumption-led growth, which in turn will have a cascading effect, says Nirmal Jain of IIFL
According to CLSA, Q4 NPL addition is likely to be over Rs 70,000 crore (though a bit down QoQ) and, like Q3, 90 percent of this could be from PSU banks - their stressed loan ratios are now at 11-23 percent.
In an interview with CNBC-TV18, Devendra Joshi, Equity Strategist at HSBC said that he continues to be underweight and defensive on Indian market as growth and earnings continue to be a worry.
Manishi Raychaudhuri of BNP Paribas advises investors to go in for private sector banks that are focussed on consumer lending. Similarly, he adds that if one wishes to invest in industrials, then one should pick companies with less leverage.
Ravi Sundar Muthukrishnan, Senior Vice-President, Co-Head, Research of ICICI Securities, says asset quality issues are a big overhang as far as private banks are concerned. However, he expects them to do well in CY16
Andrew Holland, CEO at Ambit Investment Advisors likes private banking stocks and in that HDFC Bank will continue to stand out.
Private banking & financials and select auto stocks supported the market while FMCG and capital goods lost ground.
Around the levels of 7600-7700 levels do not wait for another 100-200 points but grab the opportunity and enter into the market, says Gautam Shah, Associate Director & Technical Analyst, JM Financial.
Chirag Negandhi, MD and co-head of research of Axis Capital also likes some of the private banks, infrastructure companies, media sector benefitting from digitisation, cement names, auto companies such as Ashok Leyland and Maruti
With the foreign direct investments (FDI) reforms in 15 sectors, there will be increased capital inflow, says Dhiren Shah, Portfolio Manager, BlackRock.
Prabodh Agrawal of IIFL Institutional Equities has sharply reduced this year's Nifty earnings estimate to 8 percent from 16-17 percent at the beginning of the year
Sources tell CNBC-TV18 that the government will include any hike in FDI in public sector banks in the upcoming budget and might include it in the Finance Bill.
The 8 percent rally in the Indian stock market since its recent September 7 low has removed some of the "dislocations" that previously existed, says Sanjeev Prasad of Kotak Institutional Equities.
Amit Khurana of Dolat Capital Market expects TCS to report better numbers in terms of volumes but may be impacted in terms of cross currency.
Manoj Murlidharan of Religare Securities says earlier the public sector unit (PSU) banks alone tried to pull Bank Nifty up, but now even private banks are supporting the index.
Rahul Chadha, Mirae Asset Global Investments gave his detailed views on valuations of midcap stocks, prospect of pharma sector and possibility of indices riding higher if private banks can tackle NPA issues.
The basic bone of contention here is the 49 percent Foreign Portfolio Investors (FPI) cap which a lot of banks want to be relaxed and if not that then at least the overall FDI composite cap of 74 percent should be raised to 100 percent
Jigar Shah, CEO, Maybank Kimeng Securities, says it is a good stock pickers market with corrections happening every now and then
Parag Jariwala, VP-Institutional Research, Banking and Financial Services, Religare Capital Markets in an interview to CNBC-TV18 gave the rationale behind sell call on SKS Microfinance and his preference for private banks over public sector banks.
With the pressure likely to continue for even private banks, Vaibhav Agrawal of Angel Broking would look at entering into defensive ones like HDFC Bank, Axis Bank and would wait for lower levels to enter Yes Bank.
Eleven private parties were given licences to set up "payment banks" - banks which can do everything a regular bank can do - take deposits, pay bills, issue cheques and drafts.
Kunal Shah, associate director, Edelweiss Securities, says as far as private banks are concerned, going by the annual reports, some interesting trends have emerged. Though it won't impact the stocks in the near term, he adds.
IDFC Securities is positive on autos, consumer space, oil & gas, IT, private banks and pharma and negative on metals and cement, says Anish Damania, Head-Institutional Equities.
The house has been focused on allocating stock specific portfolios rather than chasing beta, says Swati Kulkarni of UTI MF.