Bank Stocks Outlook for the week – 21 to 25.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
With no major macroeconomic data
releases lined up, most of the action in banking
stocks next week will be along
Apr-Jun earnings of major banks. HDFC Bank, Punjab
National Bank, Canara Bank, Axis
Bank, ING Vysya Bank, Allahabad Bank, and YES Bank
Ltd, among others will detail their
Apr-Jun earning next week. Most movement will be
bank specific. Positive sentiment in
the sector was sparked after the Reserve Bank of
India announced eligibility norms on
long-term bonds for financing infrastructure
projects including affordable
housing.
Bank Nifty rose over 6.5% this week
to 15389.35. The long-term infra bond norms
addressed both the asset and
liability side of banks interested in extending credit to
such long gestation projects.
Addition of the affordable housing projects in the
infrastructure sector will further
aid the bank's retail business. There has been a sharp
upward move in most banking
heavyweights and going ahead the focus may shift to
midcaps from private and public
sector banking stocks.
Any major bout of profit book during
the week, however, might take the Bank Nifty to
15000. Kotak Mahindra Bank is our
Silver Bullet, recovery has already started to play out
during Q1 FY15 (Apr-Jun).
