Positive on banking stocks: Sadanand Shetty

In a chat with ET Now, Sadanand Shetty, Vice President and Sr. Fund Manager, Taurus Asset Management Company, gives his views on banking sector.

What is the call on banks then post the rate cut?

Re-rating would happen but policy rate cut not only is enough for that, investment cycle needs to see a definite upturn to sustain the rally in the banking stocks. Although BFSI as a segment is currently attractively valued, a lot of opportunities areavailable if one look at next 12 to 18 months’ period of time.

Do you prefer private banks to public banks post the rate cuts?

We would be selective across both the segments depending on the valuations whether it is public or private. We also look at a lot of companies from NBFC spaces offering attractive valuations. Economic up cycle generally led by BFSI segments and we do expect that policy interventions and investment cycles are taking upturn over the next few quarters and that should drive on the stock from the sector.