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pkrishna ji, yes, the fund might flow towards banks. But there is enough fund to keep insurance high. Also, banks are not undervalued. It is less just compared to insurance and given the usual returns they give, I will not overpay for banks. And, insurance reports are better than banks.

what if there is a perception or a pre occupied conception that the fund used in insurance is now being flooded in banking sector. That creates high demand in banking scripts and then the insurance are bound to lower the price as supply is high there. Also, may be the 3rd qtr report of banks are as much attractive as that of insurance. I hold insurance scripts too but i see this change in market.

Whoever said the days of insurance were over and banking are there were wrong. Yes, there are overvalued stocks in insurance that I will never buy but there are many good stocks as well such as AIC, NICL, SICL, SIL, SIC, PIC, NECO, HGI, NLG, and so on.

Banking may rise but that does not mean insurance will fall!