GOLDEN RULES FOR TRADING

Bank Stocks Outlook for the week – 02 to 06.11.2015 Stock-specific action next week; earnings eyed

Bank Stocks Outlook for the week – 02 to 06.11.2015
Stock-specific action next week; earnings eyed

Following a mixed set of earnings from index majors ICICI Bank and Axis Bank,
investors' focus will stay on earnings of other major banks, and therefore, stock-specific
action is likely to continue next week.

Next week, National Stock Exchange's Nifty constituents--State Bank of India, Punjab
National Bank and Bank of Baroda--will detail their Jul-Sep earnings. Among others,
Oriental Bank Of Commerce, Canara Bank, IDBI Bank, and Union Bank of India will
also announce their second quarter results. Indian Overseas Bank, which will detail its
Jul-Sep earnings on Saturday, will also be in focus on Monday.

Management commentary from the bank would be keenly watched as the Reserve Bank
of India has initiated a 'prompt corrective action' for the lender with an aim to improve
internal controls of the lender along with consolidating its activities.

The asset quality picture has not really changed for most PSBs (public sector banks). So
each bank would be judged on its NPA (non-performing assets) ratio and accretion to
GNPA (gross NPAs). Trend in the Bank Nifty will dependent on the trading pattern in
ICICI Bank and Kotak Mahindra Bank, which rose 2.0% and 3.6%, respectively, as their
earnings topped view. Separately, a sustained uptrend in Axis Bank, which bounced back
in yesterday's trade, will also lend support to Bank Nifty.