As shares of India’s largest bank by asset size SBI (State Bank of India) surged more than 6% on Wednesday even after the bank reported the deepest-ever quarterly loss for the Jan-Mar period of the FY18, 14 out of the total 21 PSU bank shares ended in green. Surprisingly, shares of SBI have been the biggest gainers among the components of key equity indices Sensex and Nifty on Wednesday after the bank gave the better outlook and hinted on recovery from the pending companies out of NCLT’s list.
Shares of country’s fourth-largest bank by market capitalisation SBI surged over 6% to hit a 12-week high in the mid-morning deals on Wednesday. The stock of SBI was the most active scrip on National Stock Exchange as the scrip topped the turnover counters and was the second-highest most traded stock on NSE. Up until 3:14 pm, more than 7.34 crore equity shares exchanged hands on both NSE and BSE with about 6.88 crore equity shares being traded on NSE alone. Also, at the same time, Rs 1,845 crore (approx) worth of trade was executed in shares of SBI which accounts for over 14% of the total turnover of Nifty 50 index (Rs 12,670 crore).
The stock of Mumbai-headquartered SBI advanced as high as 6.24% to a day’s top of Rs 269.75 from a share price level of Rs 253.9 before closing up 3.76% at Rs 263.45 on NSE on Wednesday. Following the sharp surge in the share prices, SBI added Rs 8129 crore in the market capitalisation. At the end of Wednesday’s trading, SBI held a market capitalisation of Rs 2,35,252.13 crore versus Rs 2,27,033.71 crore as on Tuesday.
Interestingly, out of the total 21 PSU banks, shares of 16 state-run banks ended in green with the stock of IDBI Bank and Andhra Bank rising more than 5% on Wednesday. The major gainers out of the Nifty PSU Bank index were IDBI Bank (up 5.14%), Andhra Bank (up 5.07%), SBI (up 3.76%), Allahabad Bank (up 3.7%), Bank of Baroda (up 2.9%), Indian Bank (up 0.72%), Oriental Bank of Commerce (up 0.45%) and Syndicate Bank (up 0.32%) while shares of Bank of India (down 0.46%), 2,896 (down 0.98%), 2,896 (down 1.38%) and Union Bank of India (down 2.43%) slipped into losses in the late trade. The benchmark Nifty PSU Bank index concluded 2.84% higher at 2,896 on Wednesday.
Other PSU bank shares which fared Wednesday include UCO Bank (up 1.12%), Vijaya Bank (up 0.6%), Corporation Bank (up 2.23%), United Bank of India (up 2.68%), Punjab & Sind Bank (up 0.8%) while Dena Bank (down 1.53%), Central Bank of India (down 0.97%), Bank of Maharashtra (down 2.99%) dropped and Indian Overseas Bank closed unchanged.