Bank Nifty can fall 4-5% more:
Bank Nifty can fall 4-5% more:
Banks may see a stray move coming because of RBI rate cuts and
all. The problem, the malaise in banks is much larger than that. It is
going to be largely driven by the loan quality book and that is where the PSU
banks really are at a disadvantage compared to or vis-à-vis the private sector
bank.
The Bank Nifty right now has become more of the system of some of the
large private sector bank and that is what is holding the index up. There could
be correction on Bank Nifty and it could lose around 4-5 percent from hereon.
That is why we feel that capping of the entire broader indices will also happen
because Banking, Financial Services and Insurance (BFSI) whether we like it or
not constitutes almost one fourth of the entire market weightage.
PSU banks definitely going to have difficult couple of quarters ahead of
them and private sector banks howsoever good they do, they are not going to be
able to take the slap from them. Yes, it is going to be a downward trade in the
Bank Nifty.