Banking space may outperform broader market in long-term: VK Sharma, HDFC Securities

In a chat with ET Now, VK Sharma, Head of Business, Private Broking & Wealth Management, HDFC Securities, shares his views on Bank sector.

ET Now: Is there any merit in buying banking stocks at these levels?

VK Sharma: Investors in banking stocks have to invest for long term and they need to complete the full economic cycle. In the year 2003 and 2009, we had two interest rate cycles in which the markets did not make a bottom till the fourth or the fifth interest rate cut happened, whereas this time the markets are running ahead of any interest rate cut. And after the interest rate cut, the Bank Nifty has fallen 9% or may slide further. The Nifty has fallen more than 6%. It has even beaten the broader Nifty. If you want to remain invested and you are a long-term investor, then the banking sector is a better proposition now. If you have a two-year horizon, the banking space may outperform the broader market.