Amid the ongoing uncertainty in the markets, the banking sector remains one of the healthiest, according to Sonam Srivastava, chief executive officer of Wright Research.
Banks are benefiting from multiple tailwinds, including steady loan growth of around 5% quarter-on-quarter and improving deposit traction, indicating resilient demand. However, there are some headwinds as well — particularly pressure on the net interest margins.
Bellwether stocks such as HDFC Bank, ICICI Bank and Axis are expected to be a stable allocation for investors in this volatile environment, Srivastava said. With the support of good earnings and strong fundamentals, banking stocks can act as a stable foundation within a portfolio, especially during uncertain or volatile market phases, she said.
ALSO READ: Bull Market Coming: Morgan Stanley's Sensex Target At 95,000 by Dec 2026, A 22% Upside
What Should Be Your Strategy?
Speaking on a strategy for investors, Srivastava said, "My investment strategy or what i would recommend definitely would be to look at taking risk in this environment. There will be volatility but I think this is the best time to allocate."
"Markets are currently trading at roughly a 10% correction amid volatilities. You have a lot of strong tailwinds such as banking, auto sectors," she said.
Instead of remaining overly cautious, this environment may reward those who gradually deploy capital into fundamentally strong sectors like banking and automobiles. However, volatility is expected to continue with macroeconomic uncertainties and global factors, according to the CEO.
The benchmark indices of the Indian stock market continued with declines on Thursday, after a one-day rebound, weighing in weak global cues on uncertainty around the ceasefire and reports of renewed Israeli strikes on Lebanon. The NSE Nifty 50 ended 0.9% lower, settling near 23,780 and the BSE Sensex dropped1.2% or more than 900 points to close marginally above 76,630.
ALSO READ: How Charts Show When To Enter And Exit Stocks
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
