Along with public sector banks, there is also a good potential for investment in Tier 2 or Tier 3 private banks.
Emkay Global said- Quality of balance sheet of PSU bank is very good.
From the outlook of the next 3-5 years, the Indian markets will continue to strengthen.
Mumbai. The biggest contributor to the rise in the Indian stock market in the last few days was the Indian banking sector. Bank stocks have performed well as compared to other sectors and have given good returns to the investors. Emkay Global’s Krishna Kumar Karva while giving his opinion on banking stocks said that hence it remains the preferred sector of investors. In an interview to CNBC TV18, he said, “The banking sector continues to perform well and investors should maintain their exposure to banking stocks”.
Krishna Kumar Karva expects at least 15 to 20 per cent compounded returns from the banking sector in the next two years. He told that private banks have given about 15 percent returns, while public sector banks have given high returns of about 30 to 40 percent. Hence investors should maintain their investments in public sector banks for better returns.
Also read- These 5 stocks have given more than 40% return in 6 months, have you also bet on them
Opportunity to invest in shares of public sector banks
Krishna Kumar Karva said, “Aggressive investors should explore the possibility of investing in government banks as well as Tier 2 or Tier 3 private banks, as these can also give very good returns.” Apart from financial services, Krishna Kumar Karva also likes stocks related to digital manufacturing. He said that with the increase in their capex cycle, there is a rise in the stocks of the digital manufacturing sector, so investors are advised to invest more in this sector.
While talking on the fundamentals of public sector banks, Krishna Kumar Karva of Emkay Global said that the balance sheet quality of PSU banks is very good. Apart from this, these banking stocks can prove to be better for the medium term in terms of deposit making ability.
At the same time, talking on the performance of the Indian markets, Krishna Kumar Karva said that good results of companies and policies of the government have a big contribution in this strong performance of the market. The market is currently trading around Life Time High and from the perspective of next 3-5 years, Indian markets will continue to strengthen.
Tags: Banking Sector, BSE Sensex, Nifty50, stock market
FIRST PUBLISHED : November 10, 2022, 15:22 IST