Bank Stocks Outlook for the week – 17 to 21.04.2017
Bank Stocks Outlook for the week – 17 to 21.04.2017
( www.rupeedesk.in )
Some consolidation is seen in the stocks of banks in the coming week, with the beginning of the announcement of corporate earnings for Jan-Mar, especially after the recent gains this week. The underlying sentiment continues to be positive, expect the Nifty Bank index to again trend upwards, after investors booked profits in these stocks. The Nifty Bank/Nifty price ratio continues to consolidate above 2.30 levels. Till it is trading above this level, the banking index may resume upsides in the days to come. Both private banking and PSU banking stocks are looking good and after brief consolidation, they are expected to outperform the market. The Nifty Bank is likely to find support at 21200-21400 levels. Below 21200 levels, extended selling might be seen. Last day, the Nifty Bank ended up 0.09% at 21686.60 points. Jammu & Kashmir Bank on Saturday, IndusInd Bank and YES Bank on Wednesday, and HDFC Bank on Friday. While banks are expected to continue to be weighed down by concerns about asset quality, a low earnings base due to the central bank's asset quality review in the year-ago period is seen pushing up bank' overall earnings for Jan-Mar. Due to the demonetisation effect, growth in deposits is expected to remain strong. Improvement in the credit-deposit ratio, declining trends in slippages and no one-offs will drive net interest margins sequentially. However, sluggish loan growth, lower treasury gains and higher levels of provisions are seen capping the gains.
Source : Cogencis Information Services Ltd.
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Bank Stocks Outlook for the week – 17 to 21.04.2017
( www.rupeedesk.in )
Some consolidation is seen in the stocks of banks in the coming week, with the beginning of the announcement of corporate earnings for Jan-Mar, especially after the recent gains this week. The underlying sentiment continues to be positive, expect the Nifty Bank index to again trend upwards, after investors booked profits in these stocks. The Nifty Bank/Nifty price ratio continues to consolidate above 2.30 levels. Till it is trading above this level, the banking index may resume upsides in the days to come. Both private banking and PSU banking stocks are looking good and after brief consolidation, they are expected to outperform the market. The Nifty Bank is likely to find support at 21200-21400 levels. Below 21200 levels, extended selling might be seen. Last day, the Nifty Bank ended up 0.09% at 21686.60 points. Jammu & Kashmir Bank on Saturday, IndusInd Bank and YES Bank on Wednesday, and HDFC Bank on Friday. While banks are expected to continue to be weighed down by concerns about asset quality, a low earnings base due to the central bank's asset quality review in the year-ago period is seen pushing up bank' overall earnings for Jan-Mar. Due to the demonetisation effect, growth in deposits is expected to remain strong. Improvement in the credit-deposit ratio, declining trends in slippages and no one-offs will drive net interest margins sequentially. However, sluggish loan growth, lower treasury gains and higher levels of provisions are seen capping the gains.
Source : Cogencis Information Services Ltd.