Bank Stocks Outlook for the week- 30.03.2015 to 01.04.2015
( www.rupeedesk.in )
Bank
stocks are expected to track the broad market and trade with a negative bias
next week.
Markets
will be shut on Thursday for Mahavir Jayanti and on Apr 3 on account of Good
Friday.
Traders
will remain cautious in the truncated week and not take large positions in bank
stocks
ahead
of the Reserve Bank of India's first bi-monthly policy statement for 2015-16
(Apr-Mar), due Apr 7.
Bank
Nifty has marginally underperformed Nifty in last series but has seen formation
of short
positions
which got rolled over too. Also, this index has breached its important support
which
was
around 18200. This has negative implications on it.
Bank
Nifty has gained about 3.5% as against 6.3% in Nifty in the past three months,
with public sector lenders being the laggards.
We
prefer large PSU banks like PNB (Punjab National Bank) and BOB (Bank of
Baroda), while we recommend Indian Bank in the midcap space owing to its better
standing among its peers, on various parameters.
We
believe SBI will be the biggest beneficiary of lower interest rates, easing
liquidity and a
pick-up
in economic growth given higher stress in the mid-corporate and SME (small and
medium
enterprise) segment.
We
expects Bank of Baroda stock prices to remain weak as slippages may remain
higher in the next couple of quarters along with higher restructuring expected
Jan-Mar.
