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Informist, Friday, Jan. 17, 2025

MUMBAI – Investor sentiment will remain weak for bank stocks next week, analysts said. The Nifty Bank index Friday closed 0.4% lower at 48540.60 points. Weaker than expected results from Axis Bank weighed on the index, which fell 0.4% from a week ago. Shares of the bank Friday closed 4.5% lower at INR 991.05. Support for the index next week is seen at 47894.70 points and resistance at 49370.10 points.

On Saturday, Kotak Mahindra Bank will detail its results for the quarter ended December. According to the average of estimates by 14 brokerages, the bank's net profit is seen rising 11.3% on year to INR 33.44 billion. "The bank may end up seeing a volatile quarter on asset quality with variance at play in MFI (microfinance) and unsecured portfolios. We will watch for related commentary," Elara Securities said in a report. Shares of Kotak Bank closed 2.6% lower at INR 1,758.60 on the National Stock Exchange on Friday.

HDFC Bank will announce its results for the quarter ended December on Wednesday. The bank's net profit is seen rising merely 1.7% on year to INR 166.47 billion. Sequentially, it is seen falling by 1.03%. The net interest income is seen rising 7.5% on year and 1.7% on quarter to INR 306.13 billion in Oct-Dec.

According to provisional figures released by the bank, loan growth was up 3% on year and deposit growth up 15.8% on year in Oct-Dec. Axis Securities expects the loan growth of the bank to be much lower than industry levels.

In the earnings call for Jul-Sept, the bank's management had said that they will consciously try to reduce loan growth to bring down the loan-to-deposit ratio back to pre-merger levels. As on Sept. 30, the credit-deposit ratio stood at 99.8%, and they aim to bring it down to 80-85% in 2–3 years.

Management commentary on deposit accretion and resultant credit growth, margin improvement trajectory hereon will be monitored by analysts. Shares of HDFC Bank closed 0.9% lower at INR 1,636.75 on Friday.

Donald Trump's swearing in as the 47th President of the US on Monday and the following policy announcements will have a strong impact on the global market sentiment, analysts said.

TOP HEADLINES

* Earnings Outlook: Kotak Bank's Oct-Dec PAT seen 11% higher on year, flat QoQ
* Earnings outlook: High provisions in unsecured loans to hit RBL Bank's PAT
* Analyst Concall: Axis Bank aims to maintain NIMs of 3.8% in the long run
* Axis Bank says Oct-Dec slippages in agri, unsecured loans; risks remain
* Axis Bank assessing impact of draft LCR norms, made representation to RBI
* Earnings Review: Axis Bank Oct-Dec PAT up 4% YoY, misses Street estimates
* Govt appoints Canara Bank ED Ashok Chandra as MD, CEO of PNB for 3 years
* Bank of Maharashtra's Oct-Dec cost of deposits rises 9 bps QoQ to 4.75%
* Earnings Review: Bank of Maharashtra PAT up nearly 36% YoY on rise in income
* Earnings Review: Punjab & Sind Bank net profit more than doubles in Oct-Dec
* New LCR norms may be delayed on govt pushback, new RBI chief: fin min source
* Need repository, end-use tracking to support MSME funding, says SBI chairman
 

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 Ashish Shirke

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