Expect very good numbers from PSU banks; will change outlook for Nifty also: Ajay Bagga

In a chat with ET Now, market expert Ajay Bagga shares his thoughts on the banking space. Excerpts:

ET Now: Axis Bank came out with good numbers, but this is a full sector move that you have seen - PSUs, private banks, all have moved hand in hand. What has led to this big move in banks?

Ajay Bagga: PSUs are going to get good numbers because you had a very poor quarter last year because of treasury losses. I am expecting some of them to have 80% to 100% kind of year-on-year growth on the bottom line. In anticipation of that, we are seeing moves up. Bank Nifty is clearly in a buy zone, even if you look at the technical charts. It is clearly looking very strong. You are going to see very good numbers from PSU banks. That will change the outlook for the Nifty also, because 29% is the financial sector sitting in our markets.