Shares of State Bank of India fell nearly 4% on Monday after India's largest bank reported weak third-quarter results but you can still buy the stock to gain up to 35%.
Shares of State Bank of India fell nearly 4% on Monday after India’s largest bank reported weak third-quarter results but you can still buy the stock to gain up to 35%. Shares of State Bank of India witnessed a vertical decline following the first earnings reaction as the nation’s largest lender posted a net loss of Rs 1,886.57 crore. The stock of SBI plunged as much as 3.84% to a day’s low of Rs 285 on BSE while the stock crashed to a day’s low of Rs 285.15, down by 3.79%. SBI shares topped the turnover on both BSE and NSE followed by a huge trading volume. As at 10:15 am, about 2 crore shares exchanged hands on both NSE and BSE with more than 1.85 crore shares on NSE alone.
State Bank of India logged a net loss of Rs 1,886.57 crore after a massive under-reporting of dud assets in the past fiscal and reverses in treasury operations. The State-run banking giant had reported a net profit of Rs 2,152 crore in the same quarter last fiscal year. On a standalone basis, the bank reported a wider loss at Rs 2,416 crore for the quarter ended 31 December 2017. Despite a tedious Q3 performance, the research and brokerage firm Kotak Securities has maintained a ‘buy’ and has upgraded the target price to Rs 400 from Rs 375. A target of Rs 400 implies an upside of about 35% from the current market price of Rs 296.4. Going ahead, State Bank of India remains well placed to benefit from bad loans resolution cycle, said Kotak Securities.
Meanwhile today, India’s stock market opened higher following a sharp recovery on Wall Street on Friday last week with Dow Industrials rising 33o-points and better Q3 earnings by some of the blue-chip companies. The S&P BSE Sensex gained 272.48 points to hit the day’s high of 34,278.24 whereas NSE Nifty marked the day’s peak of 10,538.1, up by 83.15 points. Shares of ONGC, Tata Steel, Sun Pharma, Bharti Airtel, Axis Bank, Hero MotoCorp, L&T, Yes Bank, Kotak Mahindra Bank, Adani Ports, Reliance Industries and Dr Reddy’s were the major gainers among Sensex constituents rising 1-5%. All the sectoral and broader indices of NSE traded in green except Nifty PSU Bank index. Other than Nifty 50, Nifty Next 50, Nifty 100, Nifty 200, Nifty 500, Nifty Sml100 Free, Nifty Mid100 Free and Nifty Midcap 50 rose up to 2%.