IDBI Bank is a good pick from the banking sector: Prakash Diwan

Prakash Diwan, Head - Institutional Business, Networth Stock Broking in an interview with ET Now talks about banking stocks.

Out of the earnings that have come up so far at this point of time with the market somewhat tapering off, is there any fresh buy for you out there in the market, any individual stock or a sectoral view as well?

The numbers from the banking side have been fairly in line with expectations or probably even better as we have seen even in the case of Canara Bank today. Generally the prices have not yet started reacting positively to these developments, especially people want to probably wait and relatively choose between the options available since it is a fairly wide ranging segment.

We like IDBI particularly even from a short term perspective where it could catch up with its peers in terms of a re-rating of sorts and then probably move up the 180 plus band and that could happen just close to the results season itself.

Of course banking could also see some of the smaller banks like Vijaya Bank, UCO Bank and all getting re-rated because the second quarter numbers are much better than the first quarter numbers in terms of playing catch up with the larger peers.

So that is one segment and auto is other segment that we like, particularly Hero Honda has bottomed out quite a bit. There is absolutely nothing left in terms of bad news to be factored in and it could again go back to its 2100-2200 trajectory in sometime.