Next 6-8 months, should you go long private banks and take some profits off for NBFCs? Shreyash Devalkar explains

economictimes.indiatimes.com:

Shreyash Devalkar, Head-Equity, Axis MF, says «rather than calling out a segment like PSU versus private versus NBFC, etc, I would like to more focus on which end use or which end segment these lending entities are catering to and the outlook on the credit growth in those segments along with the asset quality.»

Incrementally macros appear very stable. RBI Governoe in a special interview to ET Now said that closer to 8% GDP is what they are working for this fiscal. Earnings season is just over. Elections dates would come out by mid-March. Is the market already pricing in the outcome?
Shreyash Devalkar: We have always observed that when it comes to big events, like elections, markets tend to move up prior to that and in that context, the movement of the market in the last one month, three months, more importantly, and sixth month if you observe, then yes, it is getting broadly priced in.

It is very difficult to time that whether it is going to get factored in per se as far as the event is concerned before election or after election or not. But more important is one should look at it more from the CY24 point of view what next three months, six months down the line, budget, and after that the developments, within the companies and the announcements when it comes to infrastructure as well as investment in various sectors including power, etc. So, it is not going to be only about election, it is going to be about election, the actions taken post that, through budget, and even by various ministries which are going to be