Bank Stocks Outlook for the week – 21 to 24.12.2015
(Seen
Consolidation)
( www.rupeedesk.in )
Bank
stocks are likely to track the trend of consolidation in broader
markets,
with a slight upward bias, with cherry picking likely for stock
of
lenders unlikely to face pressure due to changes in lending rate norms.
The
Bank Nifty was the major laggard in the last round of selling in the
Nifty
as it added more than 35% open interest during the series. Thus, a
move
above 7850 may trigger short covering moves in banking
heavyweights,
which have remained under pressure till now.
The
new norms are good for banks, as RBI has taken on board the
feedback
from the industry and created norms that will push transmission
but
in a more calibrated manner, through resets and tenor-based
premiums.
New
marginal cost of funds-lending rate norms look favourable for banks
which
have higher fixed rate loans and loans with longer tenures, while
banks
which have shorter tenure loans could face pressure on yields.
Positive
for HDFC Bank and IndusInd Bank given higher proportion of
fixed
rate loans (70% each) while negative for YES Bank given relatively
larger of short term/working capital loans