Ever since free fall started
in Indian Markets due to covid -19 effect,Bank nifty has remained most
sensitive and affected
All major rating agencies have further downgraded them and that is a perennial
problem with banking sector that when economy goes in gloomy zone ,NPA will be
the first thing which will hit bank in retail, SME, corporate , wholesale, Agri
sector, Hence Future outlook for at least three years again becomes uncertain.
RBI liquidity infusion is
peanuts and the government fiscal capacity to backstop NPA losses remains
constrained given the social priorities and revenue slowdown. Further, it said
that mid-size banks and NBFCs (non-banking finance companies) are now forced to
severely curtail their growth plans in the near term.
All major Bank
comprising Bank nifty has fallen almost 15-25% from their 26 th feb 20
level.
In
a further survey Bank of America Merrill Lynch has further downgraded it’s
outlook on Banking industry
As for individual stocks,
BofAML downgraded ratings for State Bank of India, IndusInd Bank, ICICI Bank,
Bank of Baroda, and maintain 'buy' only on HDFC Bank in the sector.
Please
see the snapshot of free fall, bank nifty was at level of 30998 at 24 th
feb and it made a bottom rock of 16146 on 24th march.
Compare BANK NIFTY and NIFTY IT fall
Nifty IT from high of 27th feb 16462 has made a low of 10994 on 19th March 20 but has recovered till date of 14144 with good results of TCS
Investors are advised to be away at least from PSU bank , who are goin to have more NPA's in second quarters,post second and third quarter, there may be little bit clarity, that where they are heading or else government does some hefty package for them and eventually we do not have such Deep pockets like US, Japan
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