The answer to this depends on an investor’s philosophy.
If you are a value investor, such negative sentiments will give you buy opportunities for longer time to buy a position in the stock in staggered manner.
But if you are momentum investor, then it is better to invest in stocks which are having tailwinds and are the favorites of the day. These stocks will give you immediate returns as long as the sector is in favor.
Stock which are not popular will be suitable only for investors who have patience and are ready to remain calm and remain convinced about the story.
No one knows whether any specific bank will perform better in future or not, but has to invest based on his/her own conviction without bothering much about the crowd. It is difficult to implement this philosophy but some investors have benefited in the past using value investment philosophy and will continue to do so in future.
Another approach is invest both in popular sectors & stocks and also in unpopular sectors & stocks from time to time. An investor can invest in both type of stocks if he/she believes in both philosophies. Probably I have used this mixed approach in the past 10-12 years and have at times invested in unpopular as well as popular stocks based on my own analysis.
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