Sanjeev Prasad highlights the only concern for market right now
For investors wanting to stay invested in public sector undertakings (PSUs), Sanjeev Prasad, MD and Co-head at Kotak Institutional Equities advises banking stocks due to the relatively favourable valuations.
Sanjeev Prasad, MD and Co-head at Kotak Institutional Equities believes that barring valuations, there are no concerns in the Indian market right now.
Among sectors, he believes the financial sector has reasonable valuations, whether in largecap, private banks, or public sector undertaking (PSU), even though they have run up in the last few weeks months.
“Beyond the financial sector, you will have to look at individual pockets for example, consumer staples, discretionary; obviously, you will have a lot of struggles as far as growth is concerned, but our view is that over the next 2-4 quarters you will start seeing some pickup in volume numbers,” he said in a chat with CNBC-TV18.
If investors want to stay invested in PSUs, then Prasad advises banking stocks for valuation comfort.
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Last week, BofA Securities had also upgraded some PSU banking stocks while revising the target price for some. In a conversation with CNBC-TV18 post the revisions, Amish Shah, the Head of India Research at BoFA Securities, had highlighted the operational improvement within PSU banks and the broader PSU sector, suggesting that the rally in these stocks may continue.
The brokerage firm BofA Securities upgraded State Bank of India (SBI) and Bank of India (BoI), and revised the target prices of Canara Bank, and Punjab National Bank (PNB). BofA made the revisions as the third quarter of the financial year (Q3FY24) earnings beat estimates.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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