The banking sector is a good play, at current levels with multiple tailwinds in technical and fundamental front, according to Vinit Sambre, head of equities at DSP Mutual Fund. The banking sector has hit a low point in performance compared to NSE Nifty 50. In the past, this is where the sector has really outperformed the benchmark.
From that data perspective, it is a good point to start with, Sambre told NDTV Profit's Niraj Shah in an interview. On the fundamental front, credit-growth trends have moderated a bit from 18–19% to 14–15%, which is a decent number for an economy that is likely to do well, Sambre said. "Banking is going to remain (a) proxy to that and hence, from that perspective, that is a good way to also play.
" Sambre underscored that the non-performing-asset levels in banks and the incremental slippages were giving a lot of confidence as they had been at a decade best. Strong economic fundamentals should provide the firepower in terms of the growth metrics for companies, according to Sambre. "What I'm really not worried about is whether our economy is on the right track.
I think on that count, we are doing pretty well, and all of the important segments are seeing investments sticking place," he said. But he remains concerned about valuations in some pockets, pointing out that the better way to approach these categories with rich valuations would be more moderate in terms of investing. "But as far as the macro picture for India (is concerned), it is giving a.
