GOLDEN RULES FOR TRADING

Bank Stocks Outlook for the week – 11 to 15.05.2015

Bank Stocks Outlook for the week – 11 to 15.05.2015

Economic data releases next week will determine movement in bank stocks as any
interest rate action by the Reserve Bank of India will hinge on the key numbers. Overall
bias is expected to be negative tracking weakness in the broad market. Central Statistics Office will detail April Consumer Price Index-based inflation data and March Index of Industrial Production data Tuesday. April Wholesale Price Index-based inflation data is slated to be released by the commerce and industry ministry Thursday.

We even though the next RBI bi-monthly policy statement is due only on June 2, one
could not rule out an inter-policy action by the central bank as its decisions are largely
data-driven. Meanwhile, stock-specific activity will continue next week.

Syndicate Bank will detail its Jan-Mar results on Saturday, while Bank of Baroda, Union
Bank of India, Central Bank of India, Vijaya Bank, Indian Bank, Oriental Bank of
Commerce, Dena Bank, among others, are scheduled to detail their earnings next week.
Kotak (Bank) continues to add shareholder value organically and inorganically. Our
neutral stance is more valuation-driven.