Defence valuations 'obnoxious'; private banks look strong: Sandip Sabharwal's full market playbook

Analyst Sandip Sabharwal shared sector-wise views, turning most constructive on private banks citing easing NIM pressure post RBI rate cuts and potential 50-60 billion dollar FCNR deposit inflows. He flagged small-cap defence valuations as obscene at 100-200 times P/E and warned of rotation risk if the Iran ceasefire holds, while staying bullish on Bharat Electronics and cautious on HAL. IT looks cheap at 12-13 times forward earnings but lacks re-rating triggers, pharma large-caps are decent but unexciting, and in manufacturing he backs Bharat Forge but cautioned against stretched valuations in power equipment names.