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Bank shares are likely to remain subdued next week following weak earnings and renewed concerns over the impact of the measures taken by the Reserve Bank of India to curb the volatility in the rupee.
However, market participants see room for a bounce back due to short covering ahead of expiry of the July futures contract on Thursday. A partial recovery is expected also as the Bank Nifty index has already fallen nearly 7% this week.
Investors may trade cautiously ahead of the first quarter review of monetary policy on Jul 30 by the Reserve Bank of India. Chances of a rate hike instead of a rate cut increased after the RBI, late Monday announced a slew of liquidity tightening measures to curb volatility in the rupee.
There will be some caution ahead of the policy. Plus the earnings are not very encouraging. So we continue to see some pressure on banking stocks. For next week, Apr-Jun earnings will take centre-stage. ING Vysya Bank, Central Bank of India, YES Bank, Indian Overseas Bank, Bank of India, and Punjab National Bank are some of the major banks reporting their Apr-Jun earnings next week.
Bank shares are likely to remain subdued next week following weak earnings and renewed concerns over the impact of the measures taken by the Reserve Bank of India to curb the volatility in the rupee.
However, market participants see room for a bounce back due to short covering ahead of expiry of the July futures contract on Thursday. A partial recovery is expected also as the Bank Nifty index has already fallen nearly 7% this week.
Investors may trade cautiously ahead of the first quarter review of monetary policy on Jul 30 by the Reserve Bank of India. Chances of a rate hike instead of a rate cut increased after the RBI, late Monday announced a slew of liquidity tightening measures to curb volatility in the rupee.
There will be some caution ahead of the policy. Plus the earnings are not very encouraging. So we continue to see some pressure on banking stocks. For next week, Apr-Jun earnings will take centre-stage. ING Vysya Bank, Central Bank of India, YES Bank, Indian Overseas Bank, Bank of India, and Punjab National Bank are some of the major banks reporting their Apr-Jun earnings next week.
