Bank Stocks Outlook for the week – 12 to 16.12.2016)
Bank Stocks Outlook for the week – 12 to 16.12.2016)
( www.rupeedesk.in )
The shares of major banks are seen down in line with the broader market during the coming week following
release of disappointing industrial production data for October post market hours today. India's industrial
production contracted 1.9% on year in October, mainly driven by a sharp decline in the output of capital goods.
The contraction was also partly on account of the statistical effect of a high base in October.
State-owned banks such as SBI are looking at opportunities to monetise their non-core assets to meet rising
capital needs for Basel-III norms. For the rest of the week, bank stocks will take cues from the headline
inflation data, which is scheduled to be released on Tuesday at 1730 IST.
According to the median of a poll of 20 economists, the Consumer Price Index (Combined) inflation rate is
seen falling to a 15-month low of 3.9% in November from 4.20% in October.
The Reserve Bank of India, which kept the repo rate unchanged at 6.25% on Wednesday, is aiming for an
inflation rate of around 5% by March. Wednesday, bank stocks are seen choppy because investors will shift
their focus to the US Federal Open Market Committee's two-day meeting starting Tuesday.
The decision will be detailed at 0030 IST on Thursday. This will be followed by Federal Reserve Chair Janet
Yellen's speech, which will eyed to gauge the trajectory on interest rates. Investors across the globe have
factored in a 25-basis-point hike in interest rate by the US Fed.
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Bank Stocks Outlook for the week – 12 to 16.12.2016)
