Bank Stocks Outlook for the week – 10 to 14.08.2015
(Expected
to trade with positive bias)
Bank
stocks are expected to trade with a positive bias next week, despite the
possibility of some
profit
taking at higher levels, The key determinant next week will be SBI (State Bank
of India) results. SBI tends to be the benchmark for asset quality for Indian
banks, especially state-owned banks, and if it shows a strong asset quality
performance then it will be a string indicator that the worst is over.
UCO
Bank, Central Bank of India, Jammu & Kashmir Bank and Punjab and Sind Bank
which will declare first quarter earnings on Saturday will also be closely
watched on asset quality as all these banks have seen deterioration in recent
quarters. Bank of Maharashtra, City Union Bank, Dhanlaxmi Bank and IDBI Bank
are the other banks that will declare results next week.
As
broader equity markets are likely to stay mostly range bound, bank stocks are
likely to take stockspecific cues, as these lenders have shown some divergence
in their asset quality showing over the last few weeks.
