Bank Stocks Outlook
Bias for Bank Nifty positive, earnings in focus next wk
This story was originally published at 18:38 IST on 18 October 2024
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MUMBAI – Analysts have a positive bias on Nifty Bank for the coming week and see the index facing resistance at 53000 points. Shares of HDFC Bank, Kotak Mahindra Bank, and RBL Bank will be in focus as they will announce their earnings for Jul-Sept on Saturday.
The Nifty Bank index made a strong recovery this week, rising 1.80%. On Friday, the index closed 1.6% higher at 52094.20 points. Federal Bank, ICICI Bank, and State Bank of India contributed to this recovery, while Bandhan Bank and Punjab National Bank were struggling, Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities, said in a note. Support for the index is seen at 50566.30 points.
In the case of HDFC Bank, analysts expect efforts by the bank to bring down its loan-to-deposit ratio to weigh on its net profit for the September quarter, as the lender reined in its loan book to match the modest pace of deposit mobilisation. The net profit of India's largest private sector bank is expected to rise merely 2.9% on year to INR 164.46 billion for the quarter, as per the average of estimates of 15 brokerage firms.
Kotak Mahindra Bank's net profit for Jul-Sept is expected to rise 9.1% on year to INR 34.80 billion, according to an average of estimates by 12 brokerage firms. Further moderation in margins and higher operating expenses due to the Reserve Bank of India's ban on digital on-boarding of new customers by the bank is likely to weigh on the bottom line, analysts said.
TOP HEADLINES
* Axis Bank sounds caution against few credit card segments, unsecured loans
* Earnings Review: Axis Bank net profit up 18% YoY as income rises, up 15% QoQ
* South Indian Bk aims to grow deposits 8-10%, credit 10-12%, says MD Seshadri
* Share of borrowing in bks' funding mix to rise on low deposit growth - Fitch
* Earnings Outlook: HDFC Bank PAT seen near-flat as loan-deposit ratio cools
* Earnings Outlook: IDFC First Bk Jul-Sept PAT seen at INR 6.92 bln, down 8%
* CRISIL, CareEdge assign 'AA+' to SBI's Tier-I bonds; outlook stable
* Earnings Outlook:Kotak Bk Jul-Sept PAT seen up 9% as NIM moderation to weigh
* Fitch assigns 'BB (EXP)' rating to Muthoot Finance's proposed US dollar bond
* PRESS: SBI may raise INR 50 bln via additional tier-1 bonds
* Bank of Baroda announces festive deposit plan, offers higher interest rate
* IDFC FIRST Bank allots shares to IDFC shareholders post merger
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| AU Small Finance Bank | 683.65 | (-)1.00 | 693.60 | 671.60 |
| Axis Bank | 1196.85 | 2.10 | 1233.40 | 1137.80 |
| Bandhan Bank | 191.96 | (-)8.70 | 195.40 | 186.50 |
| Federal Bank | 195.30 | 4.10 | 199.90 | 188.00 |
| HDFC Bank | 1681.85 | 1.90 | 1712.60 | 1638.80 |
| ICICI Bank | 1264.50 | 3.40 | 1296.50 | 1209.20 |
| IDFC First Bank | 71.57 | (-)1.10 | 72.60 | 70.50 |
| IndusInd Bank | 1347.25 | (-)0.00 | 1368.40 | 1320.50 |
| Kotak Mahindra Bank | 1871.05 | (-)0.60 | 1896.40 | 1835.40 |
| Punjab National Bank | 103.27 | (-)1.60 | 105.00 | 101.60 |
| RBL Bank | 205.26 | 0.40 | 212.90 | 195.90 |
| State Bank of India | 820.40 | 2.60 | 835.00 | 795.60 |
| Nifty Bank | 52094.20 | 1.80 | 52963.40 | 50566.30 |
| Nifty 50 | 24854.05 | (-)0.40 | 25087.90 | 24450.80 |
| S&P BSE Sensex | 81224.75 | (-)0.20 | 81990.30 | 80026.50 |
End
Reported by Kshipra Petkar
Edited by Ashish Shirke
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