Bank Stocks Outlook for the week – 27.02.2017 to 03.03.2017
Bank Stocks Outlook for the week – 27.02.2017 to 03.03.2017
( www.rupeedesk.in )
Bank stocks are seen trading with a positive bias next week, taking cues from broader markets. The Nifty Bank index is expected to find support at 20550-20300 levels and face resistance at 20950-21100. The index ended at 20876.65, up 1.6% on week. We expects the ongoing gains to continue, as decent rollovers were seen. Also, in terms of build-up of open interest, more long positions were built at the beginning of the March series. The minutes of the Monetary Policy Committee's meeting on Feb 7-8 indicate that the Reserve Bank of India has adopted a more proactive policy stance to lend flexibility for future policy action in either direction. The central bank aims to get close to the retail inflation target of 4% in a calibrated manner, and ensure that the upper tolerance limit of 6% is not breached beyond nine months in any scenario. In the coming week, State Bank of India is likely to gain, as the government notified the effective date of the merger of five of its associate banks with itself. The merger, when it comes into effect, will catapult the lender into top 50-bank list in the world. Earlier, SBI Chairman Arundhati Bhattacharya had said that once the merger is complete, SBI will have a network of 23,899 branches and 271,765 employees under its fold. She said that as of Dec 31, the bank's consolidated base of deposits was 26 trln rupees, while its loan book was at over 18 trln rupees. As of Dec 31, the balance sheet of SBI and its five associates—State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore--was above 32 trln rupees. Among other public sector banks, Canara bank is likely to gain, as it will move closer to completing the sale of 13.45% stake in its home finance subsidiary Can Fin Homes. The lender today fixed 2,000 rupees a share as the base price for stake sale in its home finance subsidiary.
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Bank Stocks Outlook for the week – 27.02.2017 to 03.03.2017
( www.rupeedesk.in )
Bank stocks are seen trading with a positive bias next week, taking cues from broader markets. The Nifty Bank index is expected to find support at 20550-20300 levels and face resistance at 20950-21100. The index ended at 20876.65, up 1.6% on week. We expects the ongoing gains to continue, as decent rollovers were seen. Also, in terms of build-up of open interest, more long positions were built at the beginning of the March series. The minutes of the Monetary Policy Committee's meeting on Feb 7-8 indicate that the Reserve Bank of India has adopted a more proactive policy stance to lend flexibility for future policy action in either direction. The central bank aims to get close to the retail inflation target of 4% in a calibrated manner, and ensure that the upper tolerance limit of 6% is not breached beyond nine months in any scenario. In the coming week, State Bank of India is likely to gain, as the government notified the effective date of the merger of five of its associate banks with itself. The merger, when it comes into effect, will catapult the lender into top 50-bank list in the world. Earlier, SBI Chairman Arundhati Bhattacharya had said that once the merger is complete, SBI will have a network of 23,899 branches and 271,765 employees under its fold. She said that as of Dec 31, the bank's consolidated base of deposits was 26 trln rupees, while its loan book was at over 18 trln rupees. As of Dec 31, the balance sheet of SBI and its five associates—State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore--was above 32 trln rupees. Among other public sector banks, Canara bank is likely to gain, as it will move closer to completing the sale of 13.45% stake in its home finance subsidiary Can Fin Homes. The lender today fixed 2,000 rupees a share as the base price for stake sale in its home finance subsidiary.