Gurmeet Chadha suggests investments in tier II banks, good NBFCs like Poonawalla UGRO. He discusses impacts on stocks like PFC, REC, IREDA due to RBI norms. Chadha also mentions the excitement around Aadhar IPO and counter cyclical investments in various sectors.
PSU bank stocks, including Canara Bank, Punjab National Bank, and Bank of Baroda, plunged up to 6% due to RBI s draft circular proposing stricter project financing guidelines.
The way the market slipped on Friday, probably is another reminder that even the best of the bull market corrections are going to come. The problem with the corrective move is that if it sustains for longer, it is the small caps stocks which come under more pressure and shed an inordinate amount of weight. There is a technical reason for this, the liquidity in small caps stocks is lower as compared to large and midcaps. So, whenever there is a selling in this segment, the impact cost is always higher. But the other fact is that if one is able to hold on small at the time when correction is taking place, probability of more than normal return is also higher. But the question is how does one develop the ability to hold onto stocks when the narrative which is being governed by price action becomes so negative. The solution lies in combining a couple of things, which include qualitative and quantitative measure and last but not least ability to ignore noise.
Mahantesh Sabarad discusses the strong outlook for corporate banks, the impact of high crude oil prices on OMCs, challenges faced by private banks with asset quality, and the favorable position of public sector banks in the corporate lending theme.
Kunj Bansal discusses the re-rating of public sector banks catching up with private banks, mixed retail sector performance, RBI directive benefiting banks, and the importance of fundamentals and valuation for higher returns in the investment.