Nilesh Shah, MD & CEO of Envision Capital, on Tuesday, said that banks will continue to do well from hereon. Shah also said that public sector undertaking (PSU) banks could outperform as the worst of the asset quality woes are now behind.
“Banks on the whole, as a pack, will do well, but within that, it looks like the PSU banks are set to outperform in the short to medium-term. The strong tailwind that they have is that they have cleared the baggage of the past, essentially the asset quality issues and all of that is hopefully behind them,” Shah said, in an interview to CNBC-TV18.
On equity market, he said, “There is going to be a continuous rotation from one sector to the other and irrespective of how the market moves, you are still going to see strong participation from a different set of sectors. So, it’s very important to be in the market and identify the next set of opportunities and be able to ride those opportunities.”
According to him, media stocks are trading at attractive valuations. “We are going to have elections in the next two years and my view is that for some of the broadcasting companies, valuations are still very attractive while the market trades at north of 30 times, these are businesses which are trading between 15-20 times and a huge bump-up in earnings will be seen as a huge amount of spending to do with elections will take place. So media is one sector to watch out for,” said Shah.
For the entire interview, watch the video