“Well, my sense is that we have seen a rather four-day good correction which is sort of a 38% pullback to the up move we had seen since 29th of August. I believe it should be almost sufficient as some of our short-term indicators are starting to get oversold and we should be close to finding a low for this move and possibly resuming the upward trend, so that is the take that we have on the market right now,” Srivastava said in an interview to ET Now.
The strategist’s comments come amid a period of rotation in the banking sector, particularly between PSU and private banks.
On this, Srivastava explained, “Well, we have seen this relative outperformance going on for quite some time, so it is not that it is only something that is happening today. PSU stocks or NBFCs have broadly outperformed the private sector banks, that does not mean that they do not go up. We have seen a lot of rotation within the banking group as well because there are periods of time when even private banks did head higher and they will eventually, but overall when we have to make an investment choice between private banks, PSU banks, and NBFCs, the higher growth actually shows up in the other two and which is why it ends up attracting more attention.”
Srivastava’s insights suggest that while private banks may see intermittent rallies, PSU banks and NBFCs currently offer relatively stronger growth prospects. Investors, therefore, might see continued interest in these segments as markets stabilize from recent short-term corrections.
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