Bank Stocks Outlook for the week - 23 to 27.03.2015
( www.rupeedesk.in )
Bank
stocks are expected to be volatile next week ahead of contract expiry on
Thursday, while the overall bias will be negative.
We
expect next week bank stocks could witness some consolidation as present
"valuations were not cheap", even though most concurred that banks
were expected to perform well going ahead.
The
banking sector is expected to do much better in 2015-16 (Apr-Mar) compared to
2014-15 as the expected improvement in economy coupled with declining interest
rates may spur credit pick-up and also stabilise the asset quality situation of
banks.
In
the post-election rally, all the stocks across the banking space witnessed a
sharp appreciation in prices on expectations of an economic revival and in turn
an improvement in the performance of the banks. We believe that an improving
economy after a prolonged period of slowdown has led to buoyancy in the
valuations for banks.
