Bank Stocks Outlook for the week – 02 to 06.11.2015
Stock-specific
action next week; earnings eyed
( www.rupeedesk.in )
Following
a mixed set of earnings from index majors ICICI Bank and Axis Bank,
investors'
focus will stay on earnings of other major banks, and therefore, stock-specific
action
is likely to continue next week.
Next
week, National Stock Exchange's Nifty constituents--State Bank of India, Punjab
National
Bank and Bank of Baroda--will detail their Jul-Sep earnings. Among others,
Oriental
Bank Of Commerce, Canara Bank, IDBI Bank, and Union Bank of India will
also
announce their second quarter results. Indian Overseas Bank, which will detail
its
Jul-Sep
earnings on Saturday, will also be in focus on Monday.
Management
commentary from the bank would be keenly watched as the Reserve Bank
of
India has initiated a 'prompt corrective action' for the lender with an aim to
improve
internal
controls of the lender along with consolidating its activities.
The
asset quality picture has not really changed for most PSBs (public sector
banks). So
each
bank would be judged on its NPA (non-performing assets) ratio and accretion to
GNPA
(gross NPAs). Trend in the Bank Nifty will dependent on the trading pattern in
ICICI
Bank and Kotak Mahindra Bank, which rose 2.0% and 3.6%, respectively, as their
earnings
topped view. Separately, a sustained uptrend in Axis Bank, which bounced back
in
yesterday's trade, will also lend support to Bank Nifty.