Banking Stocks Poised for Selective Rally as Sector Rotation Gains Momentum

Banking stocks are poised for a selective rally as sector rotation gains momentum, according to Deven Choksey, Managing Director at DRChoksey FinServ Pvt. Ltd. Improved cost management and better loan traction are aiding optimism within financials. Choksey expects renewed interest in public sector banks, citing valuation comfort and strong government intent. He believes the ongoing earnings season has been better than anticipated, with most companies reporting better profitability than expected.