Banking sector is the place to be, don’t be put off by FII selling: Andrew Holland

economictimes.indiatimes.com:

Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies LLP, says he does not think there is anything wrong with the results season so far. The bank stocks have been victims of FII selling who have been using the banking sector as a very liquid and large overweight or overweight to neutral stance which they had to fund some of their moves into China. Once the bank sector starts to move, there is going to be a lot of short covering and there is a lot of buying to make up for some of the positions which have been lessened over the last month-and-a-half particularly by foreign investors.

Do you think the quietness in the markets is a pre-election event?
Andrew Holland: We seem to be in this range, which everyone has been talking about. But interestingly, I have noticed some of the defence stocks are starting to move and construction companies as well. There is a feeling that, once the elections are through, we are going to see a whole bunch of ordering over the three months afterwards, whether it is for defence contracts or construction contracts.

Unlock Leadership Excellence with a Range of CXO Courses

Of course, all these share prices move on the basis that they get new orders and that is why these sectors are starting to pick up again. A few weeks ago, there were some worries about voter turnout; that is less of