GOLDEN RULES FOR TRADING

Bank Stocks Outlook for the week – 13 to 17.04.2015

Bank Stocks Outlook for the week – 13 to 17.04.2015

Bank stocks are expected to remain steady and trade in a narrow range next week, tracking the broad market. Investors will keenly await the March Consumer Price Index-based inflation data due Monday, that will give cues to the trend of the broad market, and especially to banking sector stocks, they added.

The Central Statistics Office will detail March CPI-based inflation data on Monday, while the
Commerce and Industry Ministry is likely to release March Wholesale Price Index-based inflation data on Wednesday.

The Reserve Bank of India uses CPI inflation as an anchor for taking monetary policy decisions. DCB Bank and IndusInd Bank are scheduled to detail their Jan-Mar earnings results on Tuesday, and Thursday, respectively.

Market participants will await cues on the banking sector with the first set of Jan-Mar earnings numbers coming in next week. Slower advances growth, higher restructuring and elevated slippages will continue to be a hangover for the sector. It also expects the performance of private sector banks to be better than that of public sector peers for Jan-Mar.
We expect DCB Bank and Yes Bank to report a strong earnings growth, whereas Axis Bank remains our top pick.