PSU banking stocks to face impact of investigation: Lancelot D'cunha, Sharyans Wealth Management

Lancelot D'cunha, CEO, Sharyans Wealth Management, in a chat with ET Now talks about the PSU banking stocks.

What is your recommendation on most of the PSU banking stocks? Would you look at a contra buy - a buy on dips - at this point in time?

The PSU banks had run up substantially in the last 3 months. Many of them have been quoting at substantially higher price to book multiples. So given that situation, this correction is something of a market reaction. But if it gets a bit over done - specially of the good banks like PNB, Central Bank who have decent asset quality - if the selling continues at lower levels, you might again find these attractive.

But going forward, there is also going to be an impact of the investigation that is on. So you may see a bit of volatility in the market based on what actually is brought out by the CBI inquiry and based on that you will have to reassess the situation from time to time.