Bank
Stocks Outlook for the week – 16 to 20.03.2015
( www.rupeedesk.in )
Bank stocks are expected to trade with a negative bias
tracking the broad market amid no
major macroeconomic data release triggers next week.
Markets will be cautious ahead of the US Federal Open Market Committee meeting
scheduled for Tuesday and Wednesday.
The meeting will be eyed for guidance on interest rate
hikes in the US. Bank Nifty will face profit booking pressure next week.
Falling NIMs (net interest margins), high credit costs,
weak loan growth and high equity raising, particularly by the PSU banks, should
result in earnings downgrades and poor ROE (return on equity). YES Bank, Axis
Bank and ICICI Bank were its top picks in the sector, while it maintained an
'underperform' rating on all PSU banks. However, large PSU banks will likely
"close gap with private peers", while mid-sized banks may find
"differentiated niche" going ahead.
