Banking a good space for long term: Karvy Stock Broking Ltd

Ambareesh Baliga, VP, Karvy Stock Broking Ltd, in a chat with ET Now talks about the banking space.

With credit policy just round the corner, what are your expectations and what kind of a trade would you take in banking counters before the policy?

I think the expectations are quite clear. Most of us are expecting a 50 basis points hike in the interest rate. So I think this is what is actually playing on the banking sector for the time being because we had seen a decent rally sometime back. So this is just a correction which is happening and possibly the downside for the banking sector is not more than 5% to 8% from here.

One should be buying because a stock like SBI closer to 950-975 is a very decent bet and in fact we would wait for those levels to buy for long term. So possibly the next one or two quarters could be a bit dull for the banking sector but then if you are bullish on the Indian economy over the longer term I think this is the space to be in.