Bank Stocks Outlook for the week – 02 to 05.05.2017
Bank Stocks Outlook for the week – 02 to 05.05.2017
( www.rupeedesk.in )
Bank stocks are seen continuing their positive momentum in the coming week, led by banks' earnings for Jan-Mar, which are either better or in line with expectations. On the earnings front, ICICI Bank and RBL Bank will detail their earnings for Jan-Mar next week.Axis Bank, Kotak Mahindra Bank, and IDFC Bank all reported an improvement in loan growth in Jan-Mar,especially in the retail segment, indicating a pick-up in credit in the banking system. The US Federal Open Market Committee's meeting on May 2-3 will be keenly eyed for a decision on interest rates, and guidance on future rate hikes.This week, the Nifty Bank index ended up 31.95 points or 0.1% at 22358.25, and is expected to range between 21570 and 22600 next week. It had hit a lifetime high of 22380.85 points on Thursday.The positive bias continued in most PSU (public sector units) names as also the key components of the bank index, suggesting the index is likely to lead from the front in the May series as well. The April derivatives contracts expired on Thursday, after which strong long positions were seen, being built for public sector bank in the May series. PSU banking conglomerates were the centre of attraction throughout the session, with huge amount of long formations, indicating strength in the momentum. Considering the rollover activity and yesterday’s most positive move in PSU banks, we may see a sustained move in forthcoming sessions. Public sector banks will also be in focus after reports said that the government would release its bank recapitalisation funds in three tranches in 2017-18 (Apr-Mar).
Source : Cogencis Information Services Ltd.
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Bank Stocks Outlook for the week – 02 to 05.05.2017
( www.rupeedesk.in )
Bank stocks are seen continuing their positive momentum in the coming week, led by banks' earnings for Jan-Mar, which are either better or in line with expectations. On the earnings front, ICICI Bank and RBL Bank will detail their earnings for Jan-Mar next week.Axis Bank, Kotak Mahindra Bank, and IDFC Bank all reported an improvement in loan growth in Jan-Mar,especially in the retail segment, indicating a pick-up in credit in the banking system. The US Federal Open Market Committee's meeting on May 2-3 will be keenly eyed for a decision on interest rates, and guidance on future rate hikes.This week, the Nifty Bank index ended up 31.95 points or 0.1% at 22358.25, and is expected to range between 21570 and 22600 next week. It had hit a lifetime high of 22380.85 points on Thursday.The positive bias continued in most PSU (public sector units) names as also the key components of the bank index, suggesting the index is likely to lead from the front in the May series as well. The April derivatives contracts expired on Thursday, after which strong long positions were seen, being built for public sector bank in the May series. PSU banking conglomerates were the centre of attraction throughout the session, with huge amount of long formations, indicating strength in the momentum. Considering the rollover activity and yesterday’s most positive move in PSU banks, we may see a sustained move in forthcoming sessions. Public sector banks will also be in focus after reports said that the government would release its bank recapitalisation funds in three tranches in 2017-18 (Apr-Mar).
Source : Cogencis Information Services Ltd.