Bank Stocks Outlook for the week – 23 to 27.01.2017
Bank Stocks Outlook for the week – 23 to 27.01.2017
( www.rupeedesk.in )
Bank stocks are seen rising next week as investors expect the government to announce housing and infrastructure schemes in the Union Budget on Wednesday to revive credit demand, which had suffered after Demonetisation. Nifty Bank is expected to find resistance at 20000 points, followed by 20350, after which it could fall. The Union Budget for 2017-18 (Apr-Mar), to be presented on Feb 1, could trigger volatility, and if it disappoints markets, the immediate support of 19500 could come into play. Investors are hoping for a shot in the arm for public sector banks in the Budget, in the form of higher capital infusion. Capital allocation for public sector banks, as planned in the Indradhanush scheme, needs to be increased from the current 100 bln rupees earmarked for 2017-18. We expect the government to boost credit growth by increasing infrastructure spend, and providing support to crucial sectors such as agriculture and small scale industries. Among individual stocks, ICICI Bank, which will detail its earnings for Oct-Dec on Tuesday, will set the market trend next week. ICICI Bank is seen reporting a 28.3% fall in net profit for Oct-Dec at 21.66 bln rupees because the lender may be forced to keep money aside to cover for bad loans, which are expected to rise. Despite the poor expected results, the stock is likely to trend positively as the bank's fundamentals are strong. Other than ICICI Bank, UCO Bank, Syndicate Bank, Bank of Maharashtra, State Bank of Travancore and Vijaya Bank will also detail their earnings in the coming week.
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040
Bank Stocks Outlook for the week – 23 to 27.01.2017
( www.rupeedesk.in )
Bank stocks are seen rising next week as investors expect the government to announce housing and infrastructure schemes in the Union Budget on Wednesday to revive credit demand, which had suffered after Demonetisation. Nifty Bank is expected to find resistance at 20000 points, followed by 20350, after which it could fall. The Union Budget for 2017-18 (Apr-Mar), to be presented on Feb 1, could trigger volatility, and if it disappoints markets, the immediate support of 19500 could come into play. Investors are hoping for a shot in the arm for public sector banks in the Budget, in the form of higher capital infusion. Capital allocation for public sector banks, as planned in the Indradhanush scheme, needs to be increased from the current 100 bln rupees earmarked for 2017-18. We expect the government to boost credit growth by increasing infrastructure spend, and providing support to crucial sectors such as agriculture and small scale industries. Among individual stocks, ICICI Bank, which will detail its earnings for Oct-Dec on Tuesday, will set the market trend next week. ICICI Bank is seen reporting a 28.3% fall in net profit for Oct-Dec at 21.66 bln rupees because the lender may be forced to keep money aside to cover for bad loans, which are expected to rise. Despite the poor expected results, the stock is likely to trend positively as the bank's fundamentals are strong. Other than ICICI Bank, UCO Bank, Syndicate Bank, Bank of Maharashtra, State Bank of Travancore and Vijaya Bank will also detail their earnings in the coming week.
