Buy banks on dips; underweight on IT, says Credit Suisse’s Neelkanth Mishra

Credit Suisse advises buying the dips in sectors like banking, Neelkanth Mishra, managing director & India equity strategist, told CNBC-TV18.

“We, at Credit Suisse, have been advising that the dip that we are seeing in sectors like banks should be bought into,” he said.

“Like last time, the pattern will be that the lower-income households feel the biggest brunt of this. The upper-income households largely retain the salaries but not able to spend, which is why we are seeing GDP reduction, so they will be left with more savings. I see those patterns repeating like we saw last time, people have surplus savings, they have time and therefore there is much more activity happening in the small and midcaps where a lot of the local money goes in and that’s why there is excitement there,” said Mishra.