Bank Stocks Outlook for the week – 11 to 15.04.2016
(Subdued
tracking broad markets in truncated week)
( www.rupeedesk.in )
Banking
stocks are expected to trade with a subdued bias in line with the broad equity
market
in a truncated three-day trading week, with stock movements likely only tracking
bank-specific triggers.
Stock
markets will remain closed on Thursday for Babasaheb Ambedkar Jayanti and
Apr
15 for Ram Navami. With key economic indicators such as Index of Industrial
Production
for February and combined consumer price index-linked inflation for March
being
released post market hours on Tuesday, they are not expected to have any major
impact
in the curtailed trading week.
State-owned
banks are likely to eye cues from the Bank Board Bureau's first meeting that
was held in Mumbai. Minister of State for Finance Jayant Sinha had mentioned on
Thursday that consolidation in the state-owned bank space was one of the
agendas of the meeting today. While no views from the Bureau have emerged so
far, their views and guidance will be closely watched by banks and investors
for cues on the future of the public sector bank space.
Among
state-owned banks, IDBI Bank is expected to remain in volatile territory with a
negative
bias, on lack of clarity regarding the progress on the government's budget
proposal
to bring down its stake below 51%. IDBI Bank staff unions have already gone
on strike once to protest such a move, but Sinha on Thursday reiterated
that the government had made its stand on IDBI Bank clear in the budget.