Key Points
But there are two-three things which are going for the bank sector...
One is earnings season is over, like you said it has been good and probably we have seen some upgrades along the way but as we get into election season, people are watching for the assembly election results and what they will be, so one thing which I will highlight is we have done analysis of a lot of assembly elections over the last 10 years and the impact on the markets have been negligible..
The only thing with elections I will highlight is if you had bought six months before elections in the last nine elections and you sold like on the day before the election results came out, you made money in eight of the nine elections and you basically made an average return of 14%..
So, basically, the historic trend is there is a pre-election rally which happens in the market and so maybe we will see that playing out again this time also that is one thing you have to remember in elections...
That is, we really want to buy some of these things because there are banks, especially some of the smaller private sector banks, are looking very cheap and they will do well over the next 12-18 months..
