Banks to be under margin pressure in next two quarters: Ambareesh Baliga

ET Now spoke to Ambareesh Baliga, VP, Karvy Stock Broking Ltd, on his outlook on the banking sector.

Do you like what Allahabad Bank showed, Canara Bank showed, so on so forth?

Most of the banks, which have come out with results have been quite good. Quite a few were better than expected but the question is going ahead what. The next two quarters are going to be crucial. With the interest rates moving up, there would be some amount of margin pressure on the banks, so the next two quarters may disappoint the markets, so we feel that people should wait for lower levels to buy banks.

What about IFCI?

Above 58, one can still look at going long because it can move to levels of around 67-68.