Daily Voice | Good time to increase allocation to top private banks with 2-3 years perspective, says Neeraj Chadawar of Axis Securities

Daily Voice | Good time to increase allocation to top private banks with 2-3 years perspective, says Neeraj Chadawar of Axis Securities

Neeraj Chadawar is the Head - Quantitative Equity Research at Axis Securities



Banking space is likely to deliver decent returns in this calendar year, while a sharp reversal may be seen in BFSI stocks after the market volatility settles down as the outlook for the sector has significantly improved over the last few quarters, says Neeraj Chadawar, Head - Quantitative Equity Research at Axis Securities in an interview to Moneycontrol.

The ace equity strategist says top-tier banks are well placed in terms of the overall asset quality and improvement in operational matrix. This is a good time to step up allocation towards top-tier private banks with a perspective of two to three years, Chadawar shares.

Excerpts from the interaction:

Do you think equity has seen a decent correction, given the multiple issues the market is facing like inflation, geopolitical tensions, oil price surge, and policy tightening?

In the medium term, geopolitical development and the other macroeconomic factors like inflation, oil prices, bond yields, and Fed decision on the interest rate trajectory will be the key events that will drive the market performance.

Volatility will continue to be on a higher side before we arrive at a concrete direction. It is likely to go down and settle