More Stories

Informist, Thursday, Nov. 14, 2024

MUMBAI – Banking stocks are likely to continue to fall next week with overall market sentiment remaining fragile. Analysts said they have a negative bias on banking stocks. Some analysts even said there could be a sell-off in banking stocks next week.

Analysts have pegged the support for Bank Nifty at 49000 and the resistance at 51500 points next week. On Thursday, the Nifty Bank closed 0.2% higher at 50179.55 points. During the week, the index fell 2.7%. 

"Overall, the short-term trend is down, but as long as the Bank Nifty holds above 49,900, a pullback rally could be possible," said Hrishikesh Yedve, senior technical analyst at Asit C Mehta Investment Interrmediates Ltd.

S&P Global Ratings on Thursday said the asset quality of Indian banks is likely to improve going ahead due to the country's "good economic prospects." It also projected that the banking sector's weak loans will decline to about 3% of gross loans by March as against 3.5% a year ago. "This is on the back of healthy corporate balance sheets, tighter underwriting standards, and improved risk-management practices," the rating agency said.

However, deposit growth remains an area of concern as it would weaken the credit-deposit ratio of Indian banks, the rating agency said. Banks will face competition for deposits, which, along with a shift to higher interest-bearing term deposits, will squeeze net interest margins to 3% this year from 3.2% in FY24, S&P said. As per Reserve Bank of India data, bank loans rose 11.9% on year as on Nov. 1, compared with deposit growth of 11.8%.

TOP HEADLINES

* S&P says Indian bks' asset quality to improve, deposit growth to lag credit
* TREND: Festive break, prior borrowings drag Oct corp bond fundraising 36%
* SBI, HDFC Bank, ICICI Bank remain systemically important banks, says RBI
* SBI plans to raise up to INR 100 bln via infra bond next week, sources say
* Analyst Concall:Bank of India sees higher disbursals aid NIM, NII in Oct-Mar
* TREND:Falling NIM to retail book stress--what Jul-Sept results say about bks
* Bank of India special mention accts-2 up as 3-4 state PSUs default, says MD
* Earnings Review: Surge in other income boosts Bank of India PAT by 63% YoY
* Six brokerages retain rating on SBI post Jul-Sept results; 4 up target price
* India Ratings assigns 'AAA' rtg on Bank of Baroda's tier-II bonds
* Deposit growth may not reach earlier guidance of 12-13% FY25, says SBI Setty
* Earnings Review: SBI PAT up 27.9% YoY on rise in income, fall in NPAs
 

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:

End

Reported by Kshipra Petkar

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.