Bank Stocks Outlook for the week – 13 to 17.04.2015
( www.rupeedesk.in )
Bank
stocks are expected to remain steady and trade in a narrow range next week,
tracking the broad market. Investors will keenly await the March Consumer Price
Index-based inflation data due Monday, that will give cues to the trend of the
broad market, and especially to banking sector stocks, they added.
The
Central Statistics Office will detail March CPI-based inflation data on Monday,
while the
Commerce
and Industry Ministry is likely to release March Wholesale Price Index-based
inflation data on Wednesday.
The
Reserve Bank of India uses CPI inflation as an anchor for taking monetary
policy decisions. DCB Bank and IndusInd Bank are scheduled to detail their
Jan-Mar earnings results on Tuesday, and Thursday, respectively.
Market
participants will await cues on the banking sector with the first set of
Jan-Mar earnings numbers coming in next week. Slower advances growth, higher
restructuring and elevated slippages will continue to be a hangover for the
sector. It also expects the performance of private sector banks to be better
than that of public sector peers for Jan-Mar.
We expect DCB Bank and Yes Bank to report a strong earnings growth,
whereas Axis Bank remains our top pick.