The head of research Prabhudas Lilladher Amnish Aggarwal said
“Banks are reflecting some sort of a fatigue because whatever good was to come in terms of numbers – be it growth, NPAs, credit growth or profit growth – came last year. This year is going to be a maximum 8-10% growth as far as the Bank Nifty is concerned. There will be consolidation for the banking index for some time to come. Contrarily, we might have already formed the bottom as far as the IT index and stocks are concerned.”
We have witnessed this rotation in the IT and banking spaces. The actual thing is this is a typical sectorial rotation. Banking was one of the top-performing segments from the past years. But at present the situation has changed as no current increment is triggering which is left in the banking sector.
You might already see the best NIMS from another quarter so the NIMS will be more or less peakout. Certain concerns are now raised in the same quarter in the Next NPA cycle there can be credit recovery projects might also come with credit card side and personal loans.
At this point, banks are reflecting some sort of fatigue. But the good news is in terms of numbers you can see the growth. This year banking Nifty growth can happen max to max 8% to 10%.
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