Are India’s banks in the pink of health at present? Partially yes and to a degree no! Bank stocks are not performing up to expectations, thus often exhibiting a negative outlook. The temporary uptrend that saw both the sensex and nifty trending high, especially after the diesel and LPG price hike plus most blue chip companies registering good profits in the quarterly results, did have their effect on bank stocks as well. SBI on NSE, Axis bank on NSE and other bank stocks rose against the uptrend backdrop. But then the weak rupee, high inflation, high interest rates, and slow economic growth do have their lasting impact on all stocks, more especially related to banks. Worsening asset quality of banks is another minus point to the downtrend.
Rate cuts by the RBI, as expected at the end of this month, may again bring new rays of hope and a temporary uptrend of bank stocks is for certain. Analysts project the proposed rate cut ‘not to be significant’ and the central bank may watch again for the next couple of months. Till January 29, rate cut hopes may trigger price rise, and thereby trending of bank stocks. If expectations are met, the trending would continue further for another couple of days.
Interested to invest on Axis Bank NSE stocks? If you have a look at the bank’s second quarter results ending September 30, you can raise hopes about getting maximum returns on your investment, but for the long term. This India's third largest private sector lender registered 22 percent increase in net profit at Rs 1,123.54 compared to Rs 920.32 crore in the corresponding quarter in the previous year.
Total income increased from Rs 6,510.89 crore to Rs 8,280.29 crore (27 percent increase) during the same period. Going by the 52-week price change statistics, Axis Bank NSE stocks was perched lowest at Rs. 922 and highest at Rs. 1431. Close market watch is a must for short term investment.Investors of SBI NSE stocks can expect similar results. The bank registered a 30 percent increase in net profit at Rs. 3,658 crore in its Q2 results ending September 2012 besides a total income of Rs. 32,953.47 crore during the same period. Going by the 52-week price change dynamics, SBI NSE stock was perched lowest at Rs. 1802.30 and highest at Rs. 2551.70. The stocks are a good option for long term investment. For short term trading, watch the stocks closely and accordingly invest.
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