SBI is a good bank to hold for long term: Upendra Kulkarni

Upendra Kulkarni, Executive Director, Fortress Financial Services in a chat with ET Now talks about metal and banking stocks.

Looking at the pressures coming in from some metal counters as well as the Bankex, Tata Steel is looking subdued in trade. What are you making of metals as well as banking, SBI as well?

As far as metals are concerned, if there is a pressure on the economy, which looks to be coming in or international pressure, then metals also will correct accordingly. There are two types of things, one the demand for metals per se, consumption demand has not grown up so much. There is an investment demand, which has grown substantially, so at some point of time, this investment demand might take a U-turn. We cannot predict the timing though, so it would be better to be careful.

Coming back to banking something like SBI, it is a great story, it will do extremely well long-term point of view but short-term point of view, short to medium point of view, there will be pressure on SBI and other nationalised banks because there will be mark-to-market on the bonds because interest rates are definitely going to go off but long-term point of view, there is no other better bank than State Bank of India to hold it.

In terms of picks for the day, what are you looking at technical as well as fundamental?

See as far as fundamentally, some correction is overdue because market has gone into exuberance, though with some amount of jitters in the tummy. There will be some corrections in time to come, hopefuly not too deep-rooted, after that, we will see fresh highs in Indian markets especially.