Bank Stocks Outlook
for the week – 25 to 29.07.2016
(Positive bias with
F&O expiry, earnings, Fed eyed)
( www.rupeedesk.in )
Bank stocks may trade with a positive bias next week,
although market participants will eye events,
both domestic and global, for cues. Earnings for the Apr-Jun
quarter will be keenly watched, with
public as well as private sector majors reporting their
numbers.
Starting with Canara Bank on Monday, private sector lender
YES Bank will report its Apr-Jun numbers on Wednesday, Punjab National Bank on Thursday, and
ICICI Bank on Jul 29.
Some of the other lenders reporting their numbers next week
include State Bank of Mysore, IDFC
Bank, Karur Vysya Bank, State Bank of Travancore, Syndicate
Bank, and Karnataka Bank. Next week will also see the expiry of the July futures and
options derivatives contracts.
On the global front, the US Federal Reserve's monetary
policy statement on Wednesday will be parsed for clues on the central bank's thought process on interest
rate hikes. One of the keys to how the market digests the statement will be the evolution of the
language on global developments. Brexit has clearly changed the Fed calculus when it comes to gauging
the potential for financial market
Volatility. The Bank of Japan will also hold its monetary
policy meeting next week.
Among private lenders, Axis Bank could face some pressure
after it reported lower-than-expected
Apr-Jun net profit of 15.56 bln rupees post yesterday as its
asset quality weakened. However, its fall
may not be very sharp as the weak earnings had been
seemingly factored in. Axis Bank declined for
the
fourth consecutive session yesterday, closing 4.8% lower for the week