'Banking stocks could be under pressure for some time'
ET Now caught up with Pankaj Pandey, Head of Research, ICICI Direct, to get his view on the performance of banking stocks.
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| ET Now caught up with Pankaj Pandey, Head of Research, ICICI Direct, to get his view on the performance of banking stocks.
After the RBI raised the CRR by around 75 basis points, considering the current liquidity scenario, banking stocks as a pack, do you think this will continue to be a flavour?
For some time bank stocks could be under pressure till the time we do not have good monsoon because if we have a good monsoon, probably the yields or the pressure on the yields may not be so high because this year also the government might end up borrowing about 4 lakh odd crores.
If that happens and if the monsoon is good, the borrowing programme may sail through, otherwise, if monsoon does not happen to be good, then banking stocks could remain under pressure for some period of time. But we feel that a couple of banking stocks that people can usually look at in terms of valuation perspective, though we will not see much of a runaway movement in most of the counters, going forward.
After the RBI raised the CRR by around 75 basis points, considering the current liquidity scenario, banking stocks as a pack, do you think this will continue to be a flavour?
For some time bank stocks could be under pressure till the time we do not have good monsoon because if we have a good monsoon, probably the yields or the pressure on the yields may not be so high because this year also the government might end up borrowing about 4 lakh odd crores.
If that happens and if the monsoon is good, the borrowing programme may sail through, otherwise, if monsoon does not happen to be good, then banking stocks could remain under pressure for some period of time. But we feel that a couple of banking stocks that people can usually look at in terms of valuation perspective, though we will not see much of a runaway movement in most of the counters, going forward.
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