Bank Stocks Outlook for the week – 14 to 18.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
In line with the market, bank
stocks are expected to trade lower next week as investors
are likely to continue booking
profits. Retail as well as headline inflation data due
Monday along with Apr-Jun
earnings of a few banks will give direction to the market
next week. The June inflation
data is seen as the key indicator to the Reserve Bank of
India's interest rate stance. The
RBI will detail its bi-monthly monetary policy statement
on Aug 5.
According to a Cogencis poll,
India's Consumer Price Index inflation is likely to soften to
a near two-and-a-half year low of
7.8% in June, and the Wholesale Price Index-based
inflation rate is likely to
moderate to 5.8%.
Stocks of Kotak Mahindra Bank,
Federal Bank, and South Indian Bank will be in focus
as these banks will detail their
Apr-Jun results Wednesday.
There will be increased focus on
State Bank of India and Punjab National Bank on
Monday following the comments of
Department of Financial Services Secretary G.S.
Sandhu yesterday, that the two
would be the first among public sector banks in which the
government will sell its stocks,
mainly to retail investors.
He also said that the government
was already working out a strategy for stake-sale in
each PSU bank. However, such
stake sale would be in a staggered manner and the
government will not dilute its
stake below 51%. Bank Nifty is expected to trade in the
14200-15000 range next week. Bank
Nifty looks weak on technical charts and funds may opt for defensive stocks.
