Rally in banks not over: Satish Betadpur

Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC in an interview with ET Now talks about banking sector stocks.

Do you think this is just a flash on the pan or probably now the cycle has turned downwards and we can see a few more days of selling pressure coming to the banks after the kind of stupendous gains that they have seen over these past few weeks?

I do not think this is, its just a normal trading pattern there. I do not think banks are on a way down at all. We are just at the cusp of credit cycle. They have had strong rally so a little bit of taking a breather is actually good even if a 5% to 10% downsides on these banks at this point is okay from a long term investment horizon because they have had a very strong rally and bit of cool off is good and then fresh build up will come in because rally in banks is not over by a long short, I mean, these are still trading at sub two times book and at the end of the credit cycle these stocks will be trading at somewhere closer to 3 times book and so there is a long way as of in banks.