PSU banking stocks look good from a short-term view: Phani Sekhar, Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking shares his views about the PSU banking stocks.

ET Now: What do you make of the move that you are seeing over the last two days in almost all of these PSU banking names because the volumes are high despite a low free float and the stock price movement has been exceptionally smart in certain cases?

P Phani Sekhar: For companies in which government holding is close to 95% and odd, there has always been a scarcity premium associated which is clearly reflected in the price. So, one cannot really objectively justify from an investing perspective as to the kind of valuations that some of these companies enjoy. Based on this divestment news flow in the last one week especially, we have seen that some of these stocks have rallied further from here. So, it does not make any investing sense to consider them but they are good from a short-term point of view.