Key Points
I still think the IT sector is more of a play on interest rates coming down in the US which gives the catalyst for the tech companies there..
For the banking sector, if we are getting to the point where banks are saying that the worst is over for NIMs and you could look forward to lower interest rates going forward, that is the key and if that was to happen, then the banking sector could lead the whole market higher again...
You might like the banking sector because we run a long-short fund, we do not have to be in love with any one stock, be it either on the buy side or the short side so that is how you maneuvered your way around within the sector and of course then you can look at PSU banks and NBFCs as well as part of that play..
Quietly but clearly, they are growing at 15-20% which is quite enviable given that largecap banks are struggling.. Andrew Holland: It is and that is why you have seen the outperformance of some of the PSU banks and the smaller banks against the large banks and the concerns on the large banks remain; it is all about NIMs and then the unsecured loans and possible RBI interventions..
But it is just a matter of time and that the largecap banks will perform and if the commentary in the results season is more positive that the worst is over, then you will see a very strong rally because everyone has underweighted the largecaps in terms of the banks, and foreign investors have been using the banking sector for redemptions in their emerging market funds of taking money off the table, it is liquidity as well and of course with HDFC as a bank there is a possibility of this MSCI kind of increasing weightage...
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Want to deploy money? Wait till Fed outcome on March 22: Andrew Holland
12, Mar, 23The CEO of Avendus Capital Public Markets Alternate Strategies LLP, Andrew Holland, says that there is nothing to worry about in the banking sector at the moment, and that the fall in US equity markets and the kind of bearing and linkage it may have or the cascading impact on Indian banks per se is just a sentiment. He also says that it depends on the time horizon one has when it comes to buying into expensive consumer staple stocks.