Bank Stocks Outlook for the week – 24 to 28.08.2015 Seen down next week on global concerns

Bank Stocks Outlook for the week – 24 to 28.08.2015

Seen down next week on global concerns

 ( www.rupeedesk.in )

Bank stocks are expected to extend their losses next week, with global developments continuing to weigh on the broader market. Concerns of a growth slowdown in China, along with snap elections in Greece following the resignation of Prime Minister Alexis Tsipras, have hit global sentiment.

China's preliminary Markit manufacturing purchasing managers' index fell to an over-six-year low of 47.1 in August from July's final reading of 47.8. Yesterday, the National Stock Exchange's Nifty ended at 8299.95 points, down 72.80 points or 0.9% from Thursday after slumping 1.8% intraday.

The Sensex closed at 27366.07 points, down 241.75 points or 0.9%. The Bank Nifty ended 3.6% down on week yesterday at 18057.20. A technical analyst said Axis Bank could rise 5-8% in the short-term. The market caution will persist as rupee continues to devalue.

FIIs (foreign institutional investors) are staying away from the Emerging Markets due to the slowdown in their economies and this will probably impact India's currency. The rupee yesterday ended at a fresh two-year closing low of 65.8250 per dollar, having weakened by nearly 3% in the last ten days.