Bank Stocks Outlook for the Week – 15 To 19.12.2014
( www.rupeedesk.in )
Bank stocks are likely to trade with a negative bias in
line with the broad market next week, pressured by profit booking. The inflation data, which
normally is a key trigger for bank stocks, has already been factored in positively by the market and
may not provide much support to bank stocks next week.
Yesterday, official data showed that Consumer Price
Index-based inflation for November fell to 4.38%, in line with market expectations. Meanwhile, the
Index of Industrial Production for October fell to (-) 4.2% compared with 2.8% in September
and (-)1.2% a year ago, and may further hurt bank stocks.
According to a Fitch Ratings report released yesterday,
asset quality and earnings continue to remain a problem for Indian public sector banks. On the
other hand, private banks superior credit profiles put them in a better position to take
advantage of a cyclical upturn going ahead,
