NBFCs and private banks expected to outperform market

Rahul Shah from MOFSL suggests that non-banking financial companies (NBFCs) and private banks are likely to perform well in the current market. He notes that recent declines in crude prices and low inflation are creating a favorable environment for stock picking. Shah observes a shift of investment from IT stocks to financials, as large-cap IT companies have shown muted growth. He believes that while IndusInd Bank's recent performance may cause concern, it remains well-capitalized and stable for depositors. He recommends considering stocks in sectors benefiting from lower crude prices, such as aviation and consumer goods. Shah emphasizes that private sector banks and select NBFCs are showing strength, with companies like HDFC, ICICI, and Bajaj Finance leading the market rally.