Banks, power finance and infrastructure to lead next leg of market rally: Pankaj Pandey

Research head Pankaj Pandey expects banks, power finance companies and infrastructure to lead the next leg of the market rally. Banking sector concerns over the past year are fading on lower bond yields, easing FPI selling and improving liquidity, while NBFCs are likely to benefit from a softer rate environment and possible global bond index inclusion by July. He prefers REC over PFC in the power financing space with a target price of about ₹520 on a combined AUM of around ₹11.5 lakh crore, sees HDFC Bank's governance overhang easing, but flags leadership uncertainty at Kotak Mahindra Bank following recent announcements.