Motilal Oswal Private Wealth Management on Monday said they are upbeat on corporate banks as they would start focusing on growth along with managing their non-performance assets (NPA) from hereon.
The outlook for these banks look better, especially in times when non-banking financial companies (NBFC) are facing the liquidity crunch, said Sandeep J Shah, associate director, Motilal Oswal Private Wealth Management.
The long-term investors or conservative investors should look at staggered buying of quality stocks, he said.
With regards to IL&FS fallout, Shah said the market seems to have priced in the worst and has rebounded.
"IL&FS is no longer grabbing the headlines," he said. "However, the debt markets and equity market is concerned, some of the NBFCs may not be able to roll over their commercial paper (CP) or short-term borrowings."
On market reaction to elections, Shah said it will not matter so much which government comes into power, although there could be a knee-jerk reaction if the BJP loose.
“History tell us that markets have done well even in time of coalition government – so there is more to market than simply having a dominant party in power but what is more important is the action the government takes and the environment,” he said.