ETMarkets Investors' Guide: Will bank stocks be the biggest casualty of Covid 2.0?

Hello, you have tuned into ETMarkets Investors’ Guide, a show about asset classes, investment ideas and market trends. I am Nikhil Agarwal.

As investors lap up stocks from defensive sectors like IT, pharma and FMCG, besides metals, in a choppy market, financials seem to be losing their charm. Investors fear the second wave of Covid may worsen the outlook for banks. Bank Nifty lost 4 per cent in value terms last week and is down over 9 per cent on a monthly basis. Metals, on the other hand, continue to mint money for investors.

In today’s special podcast with independent market expert Rajiv Nagpal, we dig deeper on the outlook for banking stocks amid Covid 2.0.

Welcome to the show Mr Nagpal.

1) Why have financials taken a backseat in the last few weeks? Is the increasing focus on cyclicals like steel and other metals responsible for the changing mood on Dalal Street?

2) Given the current momentum, how risky are banking stocks now? How does the risk-reward ratio look like?

3) What impact do you think the second wave of Covid may have on the balance sheets of major banks?

4) And what about PSU banks? Do they look more vulnerable?

Thank you Mr Nagpal. That’s all in today’s special podcast but keep checking this space for more such interesting content. Good bye!


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