Experts expect consolidation to continue but don't see major correction in near term. After more or less stable earnings from banks, the market will closely watch third quarter earnings of SBI & Bank of Baroda, country's largest public sector lenders, on Friday.
Parag Thakkar of HDFC Securities recommends buying Pidilite Industries on dips and is bullish on Kotak Mahindra Bank.
Hemindra Hazari recommends avoiding the entire financial intermediary space because there is still lot of pain to come but if institutional investors have to be in the space then one should look at HDFC Bank and Kotak Mahindra Bank.
The RBI had met up with bank bosses recently to take stock of the bad loan problem and outline steps that would help banks clean up their balance sheets by March 2017. Parveen Kumar Gupta, Managing Director, SBI, says the RBI so far has not given any specific directives on additional provisions