Buy into banking stocks with a long term perspective: Paras Adenwala

Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors in an interview with ET Now talks about banking stocks.

Do you think flavour is coming back in banking stocks?

Banking is always going to be in flavour. My sense is that they were kind of in a consolidation mode for the last one month.

Also may be some kind of fear because of the impending interest rate hike, so there were several investors who were kind of staying on the sidelines but looking at the kind of growth that we are seeing in the economy, looking at the kind of current growth that is expected in the next one year and looking at the kind of asset quality that most of the banks have had in the last one year and the valuations, especially for midsized and to small-sized public sector banks, all these factors put together make banking a very lucrative investment proposition. So with a longer term perspective, definitely banking has to be bought into.