Banks can offer 20% upswing from current levels: Sandip Sabharwal

In a chat with ET Now, Sandip Sabharwal, asksandipsabharwal.com, shares his views on banks.

ET Now: According to you it is time to buy banks, are you sure?

Sandip Sabharwal: I am sure, because I think the main thing was whether the earlier lows hold or not and it seems with the sort of start today the earlier lows are holding. So, I think banks become the best swing trades and I would not be surprised if most of the large cap banks give a 10-20 per cent upswing from current levels. If you see an SBI Rs 210-250 will be where it was around 10-15 days back. So, it is not very difficult for that to happen as the sentiment reverses.

ET Now: But, you are concerned at all about what the reports are just going to be on asset quality because people on the street are extremely worried about that?

Sandip Sabharwal: That is right, but going by whatever interactions I have done with top managements of banks, to me it seems that the asset qualities will start improving. In fact, the results will, most probably, for the larger banks be, at least, throw surprises on the upside from this quarter onwards.