With Nifty Bank at all-time high, investors need to be wary, say experts

Experts advise that investors better stick to quality names with high predictability on future earnings, to minimise downside risk

Will the Nifty Bank turn pricier than the CNX Nifty soon? That’s the hot topic of debate in the dealing rooms of most brokerages. Trading at 30,427 levels, the valuation of Nifty Bank -- an index that comprises private and public sector banks -- indicates that the banking index is just as expensive as the Nifty, trading at 11,624 points. At current levels, the Nifty Bank and the Nifty, the benchmark index comprising India’s top 50 mega- and large-cap stocks trade at 2.96 times the CY19 estimated book value (see chart), making it the first time for the Nifty Bank