Bank Stocks Outlook for the Week – 09 to 13.02.2015
( www.rupeedesk.in )
Bank
stocks are expected to continue trading with a negative bias next week tracking
the broad market. Market participants will closely monitor macroeconomic data
releases lined up next week before taking fresh positions in bank stocks. There
could be a bounce back in the beginning of the week in Bank Nifty. The
country's largest lender, State Bank of India, will detail its Oct- Dec
earnings on Friday. Other lenders such as Bank of India, United Bank of India,
among others, are also scheduled to detail their results next week.
Stock-specific activity will continue.
Banks
have been reporting weak earnings on account of asset quality deterioration and
most of the remaining banks are expected to follow suit keeping bank stocks
under pressure. Next week, we will also have the first data set for CPI and GDP
with the new calculation. Investors will carefully monitor the numbers before
building fresh positions in banks. The Central Statistics Office will release
India's GDP growth estimates for Oct-Dec and advance estimates for 2014-15 (Apr-Mar)
on Monday.
CSO
last week introduced a new GDP series, which showed that the Indian Economy
grew more than earlier estimated. Despite the dramatic change in the FY14 GDP
figures, the macro
relevance
may not be large. CSO will release the January CPI numbers with the revised methodology
on Tuesday, which will also impact bank stocks.
