Equity Alert: SBI rises over 3% after 50 bps hike in benchmark PLR
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K.Karthik Raja
Jun 26, 2008, 6:34:26 AM6/26/08
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Equity Alert: SBI rises over 3% after 50 bps hike in benchmark PLR
Equity Alert: SBI rises over 3% after 50 bps hike in benchmark PLR
MUMBAI--3:20PM--State Bank of India shares were up over 3% at
1,230 rupees after the lender hiked benchmark prime lending rate by 50
basis points to 12.75%, effective Friday.
An official at SBI also told Newswire18 that the lender may hike
deposit rates by 25 bps in 3-5 year tenure.
The move was on expected lines, dealers said. They recommend
exiting positions in the sector on every upside as there could be more
weakness in coming sessions.
Morgan Stanley expects banking shares to fall by another 25-30%
from current levels as earnings in the sector will be hit by slower
volume growth, weaker net interest margins, and deterioration in
credit quality.
The brokerage recommends selling SBI shares.
So far today, 939,767 SBI shares have been traded on NSE. June
futures of the stock were at 2-point discount to the spot, with 2%
drop in open interest.
Equity Alert: SBI rises over 3% after 50 bps hike in benchmark PLR
MUMBAI--3:20PM--State Bank of India shares were up over 3% at
1,230 rupees after the lender hiked benchmark prime lending rate by 50
basis points to 12.75%, effective Friday.
An official at SBI also told Newswire18 that the lender may hike
deposit rates by 25 bps in 3-5 year tenure.
The move was on expected lines, dealers said. They recommend
exiting positions in the sector on every upside as there could be more
weakness in coming sessions.
Morgan Stanley expects banking shares to fall by another 25-30%
from current levels as earnings in the sector will be hit by slower
volume growth, weaker net interest margins, and deterioration in
credit quality.
The brokerage recommends selling SBI shares.
So far today, 939,767 SBI shares have been traded on NSE. June
futures of the stock were at 2-point discount to the spot, with 2%
drop in open interest.
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