We continue to remain positive on banking stocks, said Pratik Gupta, Chief Executive Officer (CEO) and Co-Head for Institutional Equities at Kotak Securities, on Tuesday.

Speaking in an interview with CNBC-TV18, Gupta said, “Banks still remain one of our preferred sectors and in our view, it’s at the start of multi-year upcycle as far as gross domestic product (GDP) growth and even corporate earnings are concerned. In fact, for a long-term investor, we still continue to recommend the better quality well run private sector banks.”

Sectors like consumer staples, paint sector have become expensive now so we would wait for a breather, Gupta added.

“They may do well in absolute terms but in relative terms, in our view, they are likely to underperform.”

On auto space, Gupta said, “We like the commercial vehicle (CV) segment from the space, but we do not like domestic two-wheeler segment much; we prefer the more export-oriented two-wheeler companies.”

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(Edited by : Ajay Vaishnav)