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Rahul Arora turns cautiously optimistic, sees strong buying opportunities in private banks
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CNBC TV18•19-10-2026, 10:52
Rahul Arora turns cautiously optimistic, sees strong buying opportunities in private banks
- •Rahul Arora of Ashika Institutional Equities turns cautiously optimistic on markets, citing easing global uncertainties and strong corporate earnings.
- •Private sector banks are expected to deliver 15% to 20% growth, with ICICI Bank and State Bank of India highlighted as attractive bets.
- •The recent IT sector rally is viewed as a tactical trade rather than a long-term structural shift, with earnings expected to stay in high single digits.
- •Corrections in US AI-related stocks could revive foreign institutional investor capital flows back into Indian equities.
- •Selected consumer staples, metal recycling firms, and electrical equipment makers offer promising growth potential.
Key Questions Answered
Rahul Arora expects private sector banks to deliver healthy earnings growth between 15% and 20% over the next two years, with ICICI Bank highlighted as the sector leader alongside value seen in State Bank of India and HDFC Bank.
Arora considers the recent IT sector rally to be primarily a tactical trading opportunity driven by under-owned positions and better-than-expected quarterly earnings, rather than the start of a long-term structural re-rating.
Arora prefers packaged food companies such as Britannia Industries, Tata Consumer Products, and Nestlé India while expecting rural demand and consumption to improve with government spending.
