Bank Stocks Outlook for the week – 25 to 29.04.2016
(May extend gains; ICICI, Axis Bank results
eyed)
( www.rupeedesk.in )
Next
week, bank stocks are likely to extend this week's gains amid stock-specific
action,
as a host of lenders detail their earnings for Jan-Mar.
The
Nifty Bank ended this week with 2.6% gains on the back of buying at lower
levels,
as
the sentiment on the sector remained positive following reports on Thursday
that the
Reserve
Bank of India has trimmed the list of companies that had to be provisioned for
in
Jan-Mar.
The
list includes 20 companies, including Jaiprakash Associates and Coastal
Energen,
The
Economic Times reported on Thursday. However, the clean-up exercise will
continue,
in order to meet the central bank's March 2017 deadline.
Hopefully,
banks have dealt with large problem loans. And, in that case, we may see
some
upside, especially for public sector banks, as they have the larger problem of
NPA
(non-performing
asset). They may outperform some of the private players.
Next
week, sector heavyweights ICICI Bank and Axis Bank will announce their
Earnings
for Jan-Mar. Others such as YES Bank, IDFC Bank, Lakshmi Vilas Bank,
State
Bank Of Travancore, State Bank of Mysore, and State Bank of Bikaner and
Jaipur
will also announce their results. The market will also take cues from the
Budget
session
of Parliament, which will be resume on Monday, especially in terms of the
passage
of the bankruptcy Bill.