After 7 Weeks Of Upmove, More Steam Left In Banking Stocks: Analysts

Out of the 11 sectoral indices on the National Stock Exchange, the Nifty Media was the top gainer for the week - boosted by Zee shares.

After 7 Weeks Of Upmove, More Steam Left In Banking Stocks: Analysts

The Nifty Bank index rose for the seventh week in a row

Domestic stock markets finished the week on a flat note as a spike in pharma stocks countered losses in IT and consumer goods shares. The S&P BSE Sensex index ended 2.72 points higher at 40,359.41, and the broader NSE Nifty benchmark 18.95 points (0.16 per cent) up at 11,914.40. The 30-scrip index had risen for past three weeks, adding a total 1,298.63 points - a gain of 3.32 per cent. In the week ended November 22, Zee Entertainment Enterprises shares climbed up 24.38 per cent to emerge the biggest percentage gainer on the Nifty 50.

Here are 10 things to know about the week gone by:

  1. Besides ZEEL, top gainers on the Nifty for the week were Sun Pharma (+8.61 per cent), Eicher Motors (+7.16 per cent) and IndusInd Bank (+6.62 per cent). On the other hand, Mahindra & Mahindra (-6.38 per cent), Yes Bank (-5.46 per cent) and Britannia (-5.34 per cent) were top laggards.

  2. Zee Entertainment Enterprises shares rose in four out of five trading sessions. The biggest spike was on Thursday, which followed the announcement that its promoters planned to offload a stake up to 16.5 per cent in the media company to financial investors to meet loan obligations to certain lenders.

  3. Out of the 11 sectoral indices on the National Stock Exchange, the Nifty Media was the top gainer for the week - boosted by Zee shares. The media gauge was followed by the Nifty Pharma and Nifty PSU Bank indices, which rose 4.49 per cent and 4.16 per cent respectively.

  4. The Nifty Bankindex - which comprises shares in 12 of the country's largest lenders - finished the week 0.33 per cent higher, clocking its seventh straight weekly gain. Analysts expect the banking stocks to continue their upmove.

  5. "Private sector banking shares are expected to consolidate over the next 3-4 months after a series of positive developments," said Jaikishan Parmar, senior equity research analyst, Angel Broking.

  6. In a ruling earlier this month, the Supreme Court cleared the way for steel giant ArcelorMittal to complete its purchase of debt-laden Essar Steel for Rs. 42,000 crore. The order came as a huge win for lenders who had challenged an order by the bankruptcy appellate tribunal which had given financial and operational creditors equal right over the sale proceeds.

  7. Besides, the Reserve Bank of India (RBI) moved Dewan Housing Finance - which owes its lenders nearly Rs 1 lakh crore - to the insolvency court. With that, DHFL became the first non-banking financial company in the country to be sent to the bankruptcy-resolution process.

  8. "Developments on the telecom sector will remain key to the momentum in banking sector going forward. Although deferred payment of spectrum fees is a big positive for the sector, telecom companies will need government support to meet the adjusted gross revenue (AGR) obligations," Mr Parmar added.

  9. In a bid to ease the financial stress in the sector, the government has decided to give telecom operators an option to defer payment of spectrum-related instalments for next two financial years. The move comes at a time when the telecom industry is struggling with piles of debt and cut-throat competition.

  10. "The Nifty Bank is expected to hit an all-time high by the end of December with upside potential in SBI, ICICI Bank and IndusInd Bank," said AK Prabhakar, head of research at IDBI Capital. "November and December have been positive months for the Indian markets."

Nifty StockWeekly Change
ZEEL+24.38%
SUNPHARMA+8.61%
EICHERMOT+7.16%
INDUSINDBK+6.62%
BHARTIARTL+6.44%
POWERGRID+6.05%
RELIANCE+5.25%
WIPRO-3.76%
HEROMOTOCO-4.22%
ASIANPAINT-4.42%
TCS-4.94%
BRITANNIA-5.34%
YESBANK-5.46%
M&M-6.38%
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