Negative on PSU banks: Sonam Udasi

In a chat with ET Now, Sonam Udasi, Head of Research, IDBI Capital, shares his views on market outlook.

ET Now: What is it that you are completely avoiding in this market right now or booking profits?

Sonam Udasi: We are continuously looking at small cap goods that have run up quite a bit and that offers an opportunity to exit in certain cases. Also, some of the realty names, we do not think the realty problems are over, so that is what we are negative on. We are still negative on PSU banks despite the run-up and the positivism that circulates because of dividend yields and past price to book value reckoning. Our own sense is that the stress in asset quality is going to continue over the next two-three quarters and any meaningful re-rating is not possible from hereon and also lot of these banks require lot of capital over the next one year. So whenever there is a supply, the price does not move substantially forward.