New Delhi, June 30 -- India's financial sector, which ended the last financial year on a mixed note, appears to be at a crossroads amid macroeconomic headwinds emanating from the West Asia conflict and the prospects of a poor monsoon, and regulatory tailwinds that can support growth and earnings resilience, especially of banks.

Amid this confluence of favourable triggers and key challenges, this could be the right time for investors to consider banking stocks that are better positioned to capitalise on regulatory tailwinds while navigating macroeconomic uncertainties.

As per Nuvama Institutional Equities, although risks from the West-Asia conflict and El Niño warrant caution, recent Foreign Currency Non-Resident Bank [FCNR (B)] and...