Bank Nifty hits record high. Here are Sanjiv Bhasin's top stock picks in banking
Premium- IIFL Securities Director Sanjiv Bhasin expects the Bank Nifty to outperform the Nifty in short term also due to underperformance of IT stocks.
The banking sector index Bank Nifty today hit a record high of when it rose 1% to 41,840 at day's high. Banking stocks have outperformed the broader markets on expectations good credit growth and FII buying. The broader Nifty today was higher and traded above 18,000 levels. “FII selling was maximum was in banks and IT over the last six months. Now with capex looking strong and credit growth picking up with festive season round, the corner guidance from banks is also very positive," said IIFL Securities Director Sanjiv Bhasin.
The FOMO factor( or fear of missing out) of FII is also fueling the rally in banking stocks, he said. He expects the Bank Nifty to outperform the Nifty in short term also due to underperformance of IT stocks. “Bank Nifty looking good for 42,500 even as Nifty will see consolidation before hitting new highs," he said.
Sanjiv Bhasin's top banking stock picks:
ICICI Bank, Kotak Mahindra Bank, IDFC First Bank and Union Bank are among his top picks.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: "Buyers are chasing banks, autos, FMCG, telecom and construction related segments which are likely to come out with good results in the coming quarters. Even while remaining invested, investors should exercise some caution arising from high valuation."
Vikram Kasat- Head Advisory, Prabhudas Lilladher Pvt Ltd, said that growth in banking sector continued to improve across segments as improvement in overall economic environment could be offset by higher inflation, geopolitical tensions. Rising rates have been passed which would entail margins being range bound."
At 10 am, Bank Nifty index pared some gains and traded 0.33% higher at 41,542 ICICI Bank, Bandhan Bank and IDFC First Bank were up between 1% and 2.5%.
MINT PREMIUM See All
Punit Patni, Equity Research Analyst, Swastika Investmart, said: “Banking stocks have witnessed a significant rise in investors’ interest due to improvement in fundamentals, buoyant growth outlook, robust balance sheets, and sanguine asset quality expectations. We believe that the Indian economy will witness an upcycle in the coming years which will lead to a significant credit uptake. Additionally, FII and FPI buying has been a cherry on the cake. Our top picks for the sector are ICICI Bank, HDFC Bank, SBI, and Federal Bank."
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less