Don’t run after all the underdogs; PSU banks are where the juice is: Digant Haria
Digant Haria, Co-Founder, GreenEdge Wealth, says “PSU banks still have a lot of juice left. With this election verdict and chances of FII flows turning back, PSUs offer a much better upside just because they are not FII over owned. ICICI and HDFCs of the world are huge companies, over owned by FIIs. We still have to depend on a lot of FII flows but the PSU banks are where the next leg of move can happen. That has been a place where we are placing our bets recently.”
How are you reading into the movement of some of the largecap stocks because while the mid and the smallcaps no doubt have fired up in this recent rally, largecaps have been moving slow and steady? What is the view on some of the marquee names within the banking space and the other largecaps which are yet to play catch up?
In the whole banking space, largecaps were the only ones which did not participate. The big reason was that there was large FII selling in the last one year and we had more than Rs 1 lakh crore getting sold out of this sector. So despite good results, good outlook, good credit cycle, best ever ROAs, everything was in place for a rally in the banking sector, but stocks like ICICI, Axis, HDFC practically did nothing for a very long time.
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I think now with the election results, that fear is going away that the FIIs will sit on the sidelines and come back only in June or July. Everybody is throwing in the towel and said, okay, now what is the problem with the banking sector? It was just the
