Bank Stocks Outlook for the week – 12 to 16.06.2017
Stocks of banking companies are expected to extend the positive momentum of the past few session
into the coming week as overall underlying sentiment for equities remains positive, despite some
consolidation. The US Federal Reserve's Open Market Committee Jun 13-14 meet will be eyed by
the sector. A hike in the US Fed rates is usually negative for the Indian market as it leads to outflow
of funds from emerging markets. Overall, the sentiment remains better for private sector banks as compared with state-owned banks, especially due to the high likelihood of the government initiating merger of some small public sector banks very soon. At the post qualified institutional placement press meet last day, State Bank of India Chairman Arundhati Bhattacharya said that it is always better to have bigger and healthier banks, when asked about consolidation of state-owned banks. Bank stocks starting this week on a strong footing but the became a bit volatile, with the Nifty Bank Index alternating between ending in the negative and positive to close the week up 1.3%. This positive sentiment cemented on Wednesday after the Reserve Bank of India's Monetary Policy Committee while maintaining status quo on policy rates, cut its inflation forecast, leading to hopes of a rate in August meet.
Source : Cogencis Information Services Ltd.
Stocks of banking companies are expected to extend the positive momentum of the past few session
into the coming week as overall underlying sentiment for equities remains positive, despite some
consolidation. The US Federal Reserve's Open Market Committee Jun 13-14 meet will be eyed by
the sector. A hike in the US Fed rates is usually negative for the Indian market as it leads to outflow
of funds from emerging markets. Overall, the sentiment remains better for private sector banks as compared with state-owned banks, especially due to the high likelihood of the government initiating merger of some small public sector banks very soon. At the post qualified institutional placement press meet last day, State Bank of India Chairman Arundhati Bhattacharya said that it is always better to have bigger and healthier banks, when asked about consolidation of state-owned banks. Bank stocks starting this week on a strong footing but the became a bit volatile, with the Nifty Bank Index alternating between ending in the negative and positive to close the week up 1.3%. This positive sentiment cemented on Wednesday after the Reserve Bank of India's Monetary Policy Committee while maintaining status quo on policy rates, cut its inflation forecast, leading to hopes of a rate in August meet.
Source : Cogencis Information Services Ltd.
