Bank Stocks Outlook for the week – 11 to 15.05.2015
Economic
data releases next week will determine movement in bank stocks as any
interest
rate action by the Reserve Bank of India will hinge on the key numbers. Overall
bias
is expected to be negative tracking weakness in the broad market. Central
Statistics Office will detail April Consumer Price Index-based inflation data
and March Index of Industrial Production data Tuesday. April Wholesale Price
Index-based inflation data is slated to be released by the commerce and
industry ministry Thursday.
We
even though the next RBI bi-monthly policy statement is due only on June 2, one
could
not rule out an inter-policy action by the central bank as its decisions are
largely
data-driven.
Meanwhile, stock-specific activity will continue next week.
Syndicate
Bank will detail its Jan-Mar results on Saturday, while Bank of Baroda, Union
Bank
of India, Central Bank of India, Vijaya Bank, Indian Bank, Oriental Bank of
Commerce,
Dena Bank, among others, are scheduled to detail their earnings next week.
Kotak
(Bank) continues to add shareholder value organically and inorganically. Our
neutral
stance is more valuation-driven.
