SME Times is powered by   
Search News
Just in:   • Report proposes ease of doing biz for MSEs  • 'US risks falling into economic hole without decisive action'  • FY21 NH construction pace to improve EPC players' performance: Report  • Mobile industry raises demand for GST rate cut in Budget  • FM launches Union Budget mobile app 
Last updated: 02 Dec, 2020  

RBI.9.Thmb.jpg RBI commences MPC meet on Wednesday

RBI.9.jpg
   Top Stories
» Report proposes ease of doing biz for MSEs
» FM launches Union Budget mobile app
» Vehicle demand rises in Dec: Report
» 'Fiscal support for growth in 2020 decade likely to be lower'
» Odisha registers 55% increase in export despite Covid
SME Times News Bureau | 02 Dec, 2020
Banking and financial sector stocks will be in focus throughout rest of the trade week as the Reserve Bank commenced its Monetary Policy Committee meet on Wednesday.

According to analysts, these sectors have performed well, of late, and investors are hopeful of a further upside in their stocks.

However, high valuations along with volatility-induced selling pressure might cap their gains.

"All the banking and NBFC stocks have performed pretty well over the last 2 months and 'Bank Nifty' has appreciated by almost 40 per cent," said Guarav Garg, Head of Research, CapitalVia Global Research.

"However, the sector is still looking strong and any dip should be considered a buying opportunity. Lower interest rates along with demand amy help in improving the books. But commentary from RBI Governor Shaktikanta Das is what retail investor should look for."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Banks had rallied well in the recent period due to cheap valuation. It also triggered concerns like weakening asset quality, moratorium problem and low credit growth as economy opened."

"Finance sector reported better operational performance in Q2FY21, and better credit growth is expected in 2021. The biggest challenge was bad loans, for which the outlook is getting better with regulatory support from the RBI and the government."

Still, he pointed out that NPA level is expected to be high for the next 1-2 years.

"Due to standstill benefits from the RBI, banks didn't recognise further slippages in Q2FY21, but in the next 2-3 quarters the NPAs can rise. After the recent rally, banks are not as cheap; still on a medium to long-term basis it is a good buy though consolidation can happen in the short-term," Nair said.

"Banks have significantly strengthened their capital during the last few months which is expected to aid further growth in the business."

The RBI's MPC will release its final resolution on the monetary policy for the calendar year 2020 on December 4.

Besides, investors expect the Reserve Bank's MPC to hold rates in veiw of elevated inflation levels and economic activity.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 25 Jan, 2021
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» L&T secures Rs.3.44 billion project from Power Grid(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter