Shares of State Bank of India (SBI), India’s largest state-owned bank, caught the eye, falling more than 17% from their highs as securities firms strengthened. SBI shares hit an all-time high of Rs 549.05 on 7th February 2022. Today, the high-quality shares are trading at Rs 455. The stock is trading above its 5-day moving average, but its 20, 50, 100, and 200-day moving averages.
SBI shares rose by 1.90% to Rs 460.10 from BSE’s previous closing price of Rs 451.35. The stock has fallen 1.37% so far and is up 8.88% this year. The bank has a market capitalization of Rs 405 crore in BSE. A total of 82,000 BSE shares were traded with a turnover of Rs 374 crore.
Lenders reported a 41% increase in net income in the fourth quarter. However, revenue lagged market expectations, with the bank’s fourth-quarter revenue expected to rise more than 60% to $104.93 billion. Shares of SBI fell 4.42% to Rs 442 from the previous close.
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CLSA is pricing SBI shares higher at Rs 615, up 36.35% from the previous closing price of Rs 451.35.
“Credit growth, margins, and asset quality are doing well,” CLSA said in a statement. The agency said credit growth is holding up well and spreads should improve. Brokers see no reason to worry about asset quality, cutting borrowing costs to offset losses in the markets.