NBFCs may outperform strong banks: BP Singh
Big banks at this point in time have hit the FII ceilings so the incremental buying in those stocks actually is very difficult. As a result of which the investors are now looking for NBFCs.
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| In a chat with ET Now,BP Singh, Executive Director & CIO-Equities, Pramerica Mutual Fund, shares his views on NBFCs.
ET Now: Do you think now there is a big opportunity in NBFCs as a group?
BP Singh: Yes, besides the fact that NBFC will be a big beneficiary of what we are seeing in the economy, a technical reason also actually helps them because most of the big banks at this point in time have hit the FII ceilings so the incremental buying in those stocks actually is very difficult. As a result of which the investors are now looking for those opportunities who have a businesses may not be comparatively to what these banks which we speak about but they are like a proxy and so therefore the investors are moving in those particular sectors and because of this technical reason also they are expected to outperform the so called strong banks.
ET Now: Do you think now there is a big opportunity in NBFCs as a group?
BP Singh: Yes, besides the fact that NBFC will be a big beneficiary of what we are seeing in the economy, a technical reason also actually helps them because most of the big banks at this point in time have hit the FII ceilings so the incremental buying in those stocks actually is very difficult. As a result of which the investors are now looking for those opportunities who have a businesses may not be comparatively to what these banks which we speak about but they are like a proxy and so therefore the investors are moving in those particular sectors and because of this technical reason also they are expected to outperform the so called strong banks.
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