Banking stocks will outperform

Banking stocks will be the leaders in the next bull run.
I strongly believe this because of the reasons listed below

Pick up in Credit growth

• -Strong GDP numbers
• -Strong IIP numbers
• -Expansion in capex because of utilization of excess capacity and pent up demand

Easing of NPAs

• Strong IIP nos suggests that corporates and retail will not defer from their loan payments
• Aiding to that benign political environment and gradually improving global scenario has helped in bringing larger FII money in India
  
• Due to which many companies have been able to raise equity from the markets and reduce the leverage on their books.

Margins would remain intact

• Base rate implementation will see many of the teaser home loans and such other loans vanish, which will help to ease the pressure on margins.
• Repricing of high cost liabilities and improving CD ratio