NEW DELHI: Shares of State Bank of India (SBI) extended its gaining streak for the second straight session today, rising nearly 4 per cent, amid positive guidance by the company.
The stock gained 3.56 per cent to end at Rs 263.20 on BSE. During the day, it surged 6.11 per cent to Rs 269.70. On NSE, shares of the company moved up by 3.76 per cent to settle at Rs 263.45.
"PSU banks did well as SBI gaining another 3.6 per cent today after the management forecast a better picture for March 2020," said VK Sharma, Head Private Client Group and Capital Market Strategy, HDFC Securities.
The stock was the biggest gainer on both the key indices. In terms of equity volume, 47.57 lakh shares of the company were traded on BSE and over 7 crore shares changed hands on the NSE during the day. Shares of SBI yesterday rose by nearly 5 per cent, adding Rs 16,154.14 crore to its market valuation in two days.
"PSU bank outperformed and prevented the market from a nosedive correction. Investors expect that the worst is over related to PSU banks NPA with adequate provisions and expectation of recapitalisation from government," Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
The country's largest lender SBI yesterday reported a record standalone net loss of Rs 7,718 crore in the fourth quarter ended March, mainly due to sharp rise in provisioning for bad loans.
"Few PSU banks traded in green in anticipation of bottoming out of NPAs going forward and positive guidance by SBI in terms of credit growth, NIMs," said Anita Gandhi, whole time director, Arihant Capital Markets.
In the current fiscal year, the bank is targeting a credit growth of 10 per cent and a deposit growth of 9 per cent.
"If the last year was the year of disappointment, this year is the year of hope, and FY20 will be the year of happiness," bank's chairman Rajnish Kumar said yesterday in Mumbai.
Shares of Allahabad Bank went up by 3.07 per cent, Bank of Baroda 2.56 per cent, UCO Bank 1.41 per cent and Corporation Bank 1.01 per cent on the BSE today.