Bank Stocks Outlook for the week – 21 to 25.11.2016
Bank stocks are seen gaining next week, mainly led by public sector banks which are expected to continue their rise. Nifty Bank is expected to find support near 18800-18300 levels and resistance at 19400-20000 levels. Yesterday, the banking index ended at 18959.05, down 3.4% on week. The government's move to withdraw 500-rupee and 1,000-rupee banknotes from circulation last week has led to a surge in deposits in the public sector banks as people deposited the now-invalid notes in banks. The build-up of higher deposits is seen positive for banks as they are likely to report higher net interest margins and profitability. State Bank of India, the country's largest bank, saw its deposits rise by 1.27 trln rupees till Thursday after the government withdrew the legal tender status of 500- and 1,000-rupee notes last week. Punjab National Bank has received 420 bln rupees since the official announcement.
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Bank stocks are seen gaining next week, mainly led by public sector banks which are expected to continue their rise. Nifty Bank is expected to find support near 18800-18300 levels and resistance at 19400-20000 levels. Yesterday, the banking index ended at 18959.05, down 3.4% on week. The government's move to withdraw 500-rupee and 1,000-rupee banknotes from circulation last week has led to a surge in deposits in the public sector banks as people deposited the now-invalid notes in banks. The build-up of higher deposits is seen positive for banks as they are likely to report higher net interest margins and profitability. State Bank of India, the country's largest bank, saw its deposits rise by 1.27 trln rupees till Thursday after the government withdrew the legal tender status of 500- and 1,000-rupee notes last week. Punjab National Bank has received 420 bln rupees since the official announcement.
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