Bank Stocks Outlook
for the week – 10 to 14.11.2014
( www.rupeedesk.in )
Bank stocks are expected to
consolidate next week tracking the broader markets as investors may book profits mainly in
stocks of public sector banks. Also, a string of macroeconomic data releases lined up
next week will impact bank stocks.
The Index of Industrial Production
for September, along with both Consumer Price Index- and Wholesale Price
Index-based inflation numbers for October, will be released next week. The CPI-based inflation is
the key macroeconomic data that the Reserve Bank of India considers before taking
a decision on monetary policy rates. Any change in key policy rates has a direct
impact on the banking sector. Most bank stocks were in the overbought range and state-owned
banks could witness some correction in the form of profit-booking next week.
Meanwhile, State Bank of India, Dena
Bank, and Jammu & Kashmir Bank will detail their Jul-Sep earnings results next week.
Canara Bank's weak operating performance, higher stressed asset formation and tier-I
capital adequacy ratio would continue to weigh on the stock.
