Zee Business Managing Editor Anil Singhvi says Bank Nifty and NBFCs will always take the lead when markets plunge and this will stay until the corona fear persists. India is really being battered by the rising covid-19 cases for the last couple of weeks. 

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Singhvi explains that both Bank Nifty and NBFCs are directly related to the economy and the rising cases are dampening the economic activity in the country, and hence both these Indices either underperform or post a bad show in the market. 

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While differentiating between Bank Nifty and Nifty, Singhvi says the latter has a lot of growth opportunity as it’s a mixture of indices from various sectors such as FMCG, Metal, Pharma. And, these sectors are strong as compared to banking and financials and therefore, it is very important to focus on Nifty, he adds. 

Singhvi points out, Bank Nifty should only be in focus when there is a reversal indication and a sharp short-covering and upswing is visible. He further says that some banks during Monday’s trade tried to show that reversal and sharp upswing, one of those was HDFC Bank, India’s second-largest lender. 

The banking heavyweight HDFC Bank gave the clear indication during Monday’s trade that it wants to be strong and come out of the laggards' list, says Singhvi, adding further that HDFC Bank alone won’t help the Index to grow, it will require cumulative support of ICICI Bank, Kotak Mahindra Bank and State Bank of India too to turn this reversal into a sharp upswing. 

Singhvi expects the other banking and financial heavyweights may follow in the footsteps of HDFC Bank.