Bank Stocks Outlook for the week - 13 to 17.02.2017
Bank Stocks Outlook for the week - 13 to 17.02.2017
( www.rupeedesk.in )
Despite status quo on policy rates and the Reserve Bank of India changing its stance to neutral from
accommodative, bank stocks are seen trading with a positive bias next week, as State Bank of India did not spring any negative surprises in its earnings for Oct-Dec. The change in the central bank's stance effectively marks an end to the rate-cut cycle. The Nifty Bank index is expected to find resistance at 20750 in the coming week and support at 19750. SBI also scaled up its guidance for loan growth in 2017-18 (Apr-Mar) to 11%, as the government aims to kick-start growth through infrastructure, leading to a rise in loans to corporates. The country's largest lender reported a 134% on-year jump in its bottomline for Oct-Dec at 26.1 bln rupees, helped by a onetime gain from the sale of its stake in the life insurance subsidiary. The bank's fresh slippages fell to 101.9 bln rupees from 103.4 bln rupees in Jul-Sep. Chairman Arundhati Bhattacharya said that fresh slippages for the current financial year ending March were unlikely to exceed the guidance of 400 bln rupees. The Central Statistics Office will detail data on Consumer Price Index-based inflation for January at 1730 IST on Monday. CPI-based inflation in India is seen moderating to 3.2% in January, mainly on account of fall in food prices and the statistical effect of a higher base according to poll expectation. Investors will take cues from core inflation levels--the change in prices of goods excluding food and fuel. So far this financial year, core inflation has remained "stubborn" and "sticky", an RBI official had said on Wednesday. Based on the CPI, core inflation has risen from 4.6% in July to 4.9% in December.
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Bank Stocks Outlook for the week - 13 to 17.02.2017
( www.rupeedesk.in )
Despite status quo on policy rates and the Reserve Bank of India changing its stance to neutral from
accommodative, bank stocks are seen trading with a positive bias next week, as State Bank of India did not spring any negative surprises in its earnings for Oct-Dec. The change in the central bank's stance effectively marks an end to the rate-cut cycle. The Nifty Bank index is expected to find resistance at 20750 in the coming week and support at 19750. SBI also scaled up its guidance for loan growth in 2017-18 (Apr-Mar) to 11%, as the government aims to kick-start growth through infrastructure, leading to a rise in loans to corporates. The country's largest lender reported a 134% on-year jump in its bottomline for Oct-Dec at 26.1 bln rupees, helped by a onetime gain from the sale of its stake in the life insurance subsidiary. The bank's fresh slippages fell to 101.9 bln rupees from 103.4 bln rupees in Jul-Sep. Chairman Arundhati Bhattacharya said that fresh slippages for the current financial year ending March were unlikely to exceed the guidance of 400 bln rupees. The Central Statistics Office will detail data on Consumer Price Index-based inflation for January at 1730 IST on Monday. CPI-based inflation in India is seen moderating to 3.2% in January, mainly on account of fall in food prices and the statistical effect of a higher base according to poll expectation. Investors will take cues from core inflation levels--the change in prices of goods excluding food and fuel. So far this financial year, core inflation has remained "stubborn" and "sticky", an RBI official had said on Wednesday. Based on the CPI, core inflation has risen from 4.6% in July to 4.9% in December.
