Bank
Stocks Outlook for the week – 14 to 18.09.2015
(Seen volatile next week; August CPI data eyed)
( www.rupeedesk.in )
Bank
stocks are expected to remain volatile next week mirroring the broad market and
added that investors are hoping for a benign inflation print, which, in turn,
will fuel hopes for a repo rate cut by the Reserve Bank of India at its Sep 29
bi-monthly monetary policy meeting.
India's
headline inflation rate based on the Consumer Price Index (Combined) is likely
to fall to a
nine
months low of 3.5% in August from 3.78% a month ago. The Central Statistics
Office will detail the CPI (Combined) inflation data for August after market
hours on Monday.
Separately,
the Wholesale Price Index inflation data for August will also be released on
the same day by the commerce and industry ministry. After release of the
inflation data at the beginning of the week, market focus will shift to the US
Federal Open Market Committee meeting, scheduled for Wednesday and Thursday.
Traders
will be cautious ahead of the US Fed meet and will refrain from increasing
their investments in stocks of banks. After falling for four consecutive weeks,
the Bank Nifty was able to snap its downtrend, and ended 3% higher for the week
at 16612.60. Buy on dips anything around the initial support level will be a
good place to enter the Bank Nifty.
