Bank Nifty, the barometer of banking stocks has fallen nearly 32 percent since May 17. It fell from a high of 13317 on May 17 to close today at 8870.
Gautam Trivedi of Religare Capital is underweight on the banking space. "One should wait for Q2 results before putting fresh money to work in the banking space," he adds.
Pathik Gandotra, Partner of Dron Capital Advisors is of the view that one may buy private sector banks. "I would buy banks which are reasonably good franchises, which will also have a story of gaining market share eventually," he adds.
According to VK Sharma, a good Nifty resistance can be seen at 5808. He believes the market can gain 100 points from hereon and expects today‘s session to close on a positive note.
Girish Nadkarni from Avendus Capital believes that despite ground reality of economy being extremely tough, markets are at such level that risk return is in favour of buy trade.
HDFC Bank saw an increment in bad loans in the first quarter because of which the stock got hammered down. However, most experts continue to call the stock a safe bet among the private sector banks.
Dipan Mehta, member, NSE & BSE says pharma companies are likely to post positive Q1 numbers on the back of rupee weakness.
Infy numbers may not be great now. But in the next 2-3 quarters, the volatility in Infosys may come down and the chances of it outperforming the markets will get better
According to Tirthankar Patnaik of Religare Capital Markets one can sell private sector banking stocks because the numbers are not going to be good and any kind of capital outflow from India would hit financials the most.
The economic environment hasn't changed much, looking at the last three months. It is more about Quantitative Easing (QE3) tapering, which is leading to this correction in private banks
Gautam Sinha Roy of Motilal Oswal Securities recommends investors to build a portfolio of quality NBFCs which have a fair shot of winning the new banking license.
C Jayaram, Joint Managing Director of Kotak Mahindra Bank is bullish on telecom sector and beleives that private sectors bank though safe bets will not see much upside form here.
Microsec has come out with its report on "BFSI quarterly performance analysis (Q4FY13)". The research firm believes the Housing and Automobile finance NBFCs themselves may see revival if interest rates decline further. However, with an expectation of economic recovery is in near term, NBFCs are all set for a strong growth in the coming years.
Indian rupee opened lower at 56.54 per dollar on Monday. Gopi Suvanam, Founder, InvestWorks expects it to touch 62/USD over the next couple of months.
UR Bhatt, MD, Dalton Advisors says, in an interview to CNBC-TV18, that he expects the Nifty to trade in the 5800-6100 range and advises investors to bet on select pharmaceuticals, private banks and the FMCG segment.
Maruti is a play on the yen more than anything, says Sanjeev Prasad of Kotak Institutional Equities. He is bearish on FMCG stocks, and says will not buy them at the current price to earning multiples of 30-35 times.
Dipen Sheth, Head-Institutional Research of HDFC Securities believes investors are moving away from equities to other assets like gold and real estate.
Pramod Gubbi, VP-Sales, Ambit Capital said since the liquidity inflows are likely to remain steady going forward for India, the market see some gains on back of that. However, market could see some consolidation in the near-term, he added.
Sandeep Bhatia of Kotak Institutional Equities said he would not expect more than 10 percent up tick in private banks stocks from current levels. He is cautious on the sector.
Ajay Bodke, head- Investment Strategy & Advisory, Prabhudas Lilladher prefers private banks like ICICI, J&K and Yes Bank over public sector lenders.
Sudarshan Sukhani of s2analytics.com is upbeat on private banks and public sector undertaking (PSUs) for short-term trading.
Last couple of days have not been great time for market. In two days Nifty nearly lost 200 points. However, Ajay Srivastava, CEO of Dimensions Consulting believes that Nifty stocks might soon become attractive.
Dolat Capital has come out with its report on banking sector. The PSBs can be the significant beneficiaries of improvement in the economic growth, as the asset quality deterioration slows down, and recoveries start rising. Among PSB's one can prefer SBI, PNB and Union Bank, says the research firm.
The credit-card segment in the country is estimated to have grown for the first time this fiscal after witnessing sluggishness for four years, says a report by the electronic-transactions provider Atos Worldline.
SP Tulsian of sptulsian.com tells CNBC-TV18 that the worsening has stopped for banks and there is improvement in the asset quality and the apprehensions that people are expecting from the banks.