Nifty to make new highs this year; buy financials: Quantum

So, my view is that the banking sector as a whole has a long way to go. If that 10,000 target or say the 9,000 plus target that I am talking about is achieved, the banking sector would contribute substantially to that which means that we have a substantial rerating of public sector undertaking (PSU) banks which are beaten down beyond recognition at this point of time and as if they are going to close down tomorrow morning even though they may have gone up for five or 10 percent from the lows that we saw a few weeks back.

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So, if you are holding on to good quality midcaps as an investor, I do not think you need to worry even though your stock may have corrected 40 percent in the last few weeks or months or so. But, you need to really look at it, what you are holding on to, because when the whole midcap frenzy began, everyone wanted to find the next multi-bagger and get into it. So, therefore you need to reassess what you are holding.

It is a good time to shuffle portfolios amongst midcap stocks and get into the right ones. Good quality, lower debt, companies will get traction from as soon as the economy picks up. Good managements, good brands maybe. These kind of broad parameters, one should look at and classify the company that you are holding in your portfolio. But, midcaps would make you money, would make you larger money as small investors, private investors, but of course, you need to be selective there.

Read more at: https://www.moneycontrol.com/news/market-outlook/nifty-to-make-news-highs-this-year-buy-financials-quantum_3133021.html

 

I agree. PSU Banks may have a temporary reprieve (dead cat bounce) but there are too many structural problems in them to warrant being a serious investment candidate.