Bank Stocks Outlook For The Week - 25 to 29.09.2017
Bank Stocks Outlook For The Week - 25 to 29.09.2017
( www.rupeedesk.in )
Even as most bank stocks are seen extending losses next week, some value buying could be expected in select mid-cap lenders as underlying sentiment in the sector remains positive. Any news with regard to recapitalisation and consolidation of public sector banks will lend cues to the sector. On Friday, Finance Minister Arun Jaitley said that the government would "work expeditiously" and
provide full support to banks for capitalisation and to resolve the "core concern" of bad assets
weighing on the sector. The government has budgeted 100 bln rupees for capital infusion into public
sector banks for the current fiscal. However, with non-performing assets continuing to mount, there is an increasing cry for the Centre to provide further capital to state-owned lenders. However, Jaitley added that strengthening the banking system had to be done in tandem with the government's consolidation efforts. The department concerned, in consultation with the banks, is seriously
looking into it. We are at a very advanced stage of deciding our strategy. We are looking at both consolidation and strengthening," he said. Any measures to provide a fiscal stimulus to promote growth in the country will also lend cues to the sector. Rollovers to the October series ahead of expiry of the current series are also seen causing some volatility. Stocks in the banking sector may be weighed down tracking the trend in broader market indices, after the Nifty 50 fell below the crucial 10000-mark to a two-week low due to increased geopolitical tensions. North Korea's Foreign Minister Ri Yong Ho on Friday said that Pyongyang could detonate a hydrogen bomb in the
Pacific Ocean, while leader Kim Jong-un promised the "highest level of hard-line" countermeasures against the US. This comes after US President Donald Trump's call for fresh sanctions on the country in his recent speech at the United Nations.
Source : Cogencis Information Services Ltd.
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Bank Stocks Outlook For The Week - 25 to 29.09.2017
( www.rupeedesk.in )
Even as most bank stocks are seen extending losses next week, some value buying could be expected in select mid-cap lenders as underlying sentiment in the sector remains positive. Any news with regard to recapitalisation and consolidation of public sector banks will lend cues to the sector. On Friday, Finance Minister Arun Jaitley said that the government would "work expeditiously" and
provide full support to banks for capitalisation and to resolve the "core concern" of bad assets
weighing on the sector. The government has budgeted 100 bln rupees for capital infusion into public
sector banks for the current fiscal. However, with non-performing assets continuing to mount, there is an increasing cry for the Centre to provide further capital to state-owned lenders. However, Jaitley added that strengthening the banking system had to be done in tandem with the government's consolidation efforts. The department concerned, in consultation with the banks, is seriously
looking into it. We are at a very advanced stage of deciding our strategy. We are looking at both consolidation and strengthening," he said. Any measures to provide a fiscal stimulus to promote growth in the country will also lend cues to the sector. Rollovers to the October series ahead of expiry of the current series are also seen causing some volatility. Stocks in the banking sector may be weighed down tracking the trend in broader market indices, after the Nifty 50 fell below the crucial 10000-mark to a two-week low due to increased geopolitical tensions. North Korea's Foreign Minister Ri Yong Ho on Friday said that Pyongyang could detonate a hydrogen bomb in the
Pacific Ocean, while leader Kim Jong-un promised the "highest level of hard-line" countermeasures against the US. This comes after US President Donald Trump's call for fresh sanctions on the country in his recent speech at the United Nations.
Source : Cogencis Information Services Ltd.
