A Nifty pullback needs to be taken in stride, says Sharekhan's Gaurav Dua

Earnings in the banking sector are expected to moderate due to pressure on margins and potential elevated slippages in the unsecured loan book, he says

It has been a choppy ride for the markets in the past week. As they prepare for the July-September quarter (Q2) results for 2024-25 (FY25), Gaurav Dua, senior vice-president and head of capital market strategy at Sharekhan by BNP Paribas, tells Puneet Wadhwa in an email interview that, as a strategy, they have gradually taken money off the table from overheated sectors like capital goods, engineering, and infrastructure and increased exposure to information technology (IT) services, pharmaceutical (pharma), and fast-moving consumer goods (FMCG). Edited excerpts:

What’s your market outlook for the next few months?
 

The markets had