According to CK Narayan of Growth Avenues the market seems to be holding on to gains and seems to be telling that it wants to continue going higher
In the past few days FIIs have increased allocation to India perhaps on the back of the issues in China, says Promod Gubbi of Ambit Investments
On the macro front, Prabodh Agrawal, president and head of research at IIFL Institutional Equities, continues to remain positive. He says even if GST implementation gets delayed by three months, it should not be an issue.
"We expect around 15 percent year-on-year profit after tax (PAT) growth for private banks with stable pre-provision operating profit (PPOP) growth. PSUs will likely have a tough quarter operationally with elevated asset quality stress along with pressure on net interest margins," said Nomura.
In an interview with CNBC-TV18, Saswata Guha, Director, Fitch Ratings said low asset quality and insufficient capital are the main reasons for slowdown in loan growth.
The next important cue for the markets will be the results season, followed by the monsoon session of the Parliament, says Taher Badshah of Motilal Oswal AMC. He will also be watching out for some guidance from the Reserve Bank if monsoon continues to be good.
Ajay Argal of Baring Asset Management (Asia), says the house has always had a long-term perspective of 3-5 years and the focus has been on few individual stocks and the current time is as good as any to invest.
Acknowledging that people want confirmation from the ground, "and it will come despite the presence of risks like monsoon and rate cut," Ridham Desai suggested the time now is good to enter Indian market.
Jagdish Malkani, Member of NSE believes 8000 to be a strong support level for Nifty, and is bullish on private sector banks.
Market expert Anand Tandon says the sell-off in private banks is justified as they too are over-valued. He believes there‘s only so much the banks can push in terms of retail lending if credit growth is not seeing an uptick.
The key risks to economic growth are delayed revival in rural demand based on the expectation of a sub-par monsoon and weak export growth.
The government‘s stance to provide capital only to public-sector banks (PSBs) meeting its performance thresholds â€“ even as they reel under asset quality and profitability pressures â€“ will force many to grow at a significantly slower pace, says CRISIL.
Amit Dalal, executive director, Tata Investment Corp, says one needs to wait for consolidation in the market before making big bets.
From a tactical perspective the pecking order would be private banks, NBFCs and public sector banks, says Swati Kulkarni, Executive Vice President and Fund Manager at UTI Mutual Fund.
Andrew Holland of Ambit Investment Advisors, says the government's measures in the fertilizer, power and coal space will not result in earnings improvement, only a rise in corporate orders will.
The market remained rangebound with the Nifty hovering around 8540-8600 levels. Private banking & financials, FMCG and healthcare stocks supported the market whereas oil & gas, capital goods, metals and power stocks were under pressure.
Neelkanth Mishra of Credit Suisse feels the weakness in the Indian market is partly due to government's fiscal tightening. But on the brighter side, he believes there will be a pick up in government spending from April 1.
Sachin Shah, Fund Manager, Emkay Investment Managers believes the fourth quarter earnings for PSU banks are likely to be subdued.
Tushar Mahajan of Nomura Financial Advisory says selling in Bank Nifty on Wednesday dragged the market. He feels PSU banks will continue to remain under pressure as raising fresh capital will be an overhang.
In March 2009, the same stood at 15 percent of the total market cap and 36 percent of free float, which rose to 23 percent and 47 percent respectively at the end of December The steep rise was driven by the optimism about Narendra Modi Government unleashing reforms, BofA-ML Global Research said in a report today.
Sahil Kapoor of Edelweiss Financial Services is of the view that one may prefer private sector banks.
Deven Choksey, Managing Director at KR Choksey Shares & Securities has a positive view on banks and advises acculumating with a view of 2-3 years.
Sanjeev Prasad, Senior ED & Co-Head at Kotak Institutional Equities is of the view that one may prefer private sector banks including HDFC Bank.
Ajay Bagga, Independent Market Expert is of the view that one may look at auto and cement space.
In an interview to CNBC-TV18, BP Singh of Pramerica Mutual Fund says that though PSU banks have disappointed with their earnings, they reflect a story of the past.