Equity Alert: SBI seen down 2-3% on 7-bln-rupee MTM hit report

[K.Karthik Raja]

Equity Alert: SBI seen down 2-3% on 7-bln-rupee MTM hit report
MUMBAI--9:18AM--Shares of State Bank of India are seen down 2-3%
today on a
report the bank may suffer a 7-bln-rupee hit in Apr-Jun due to mark-to-
market
losses on bonds.
SBI had received bonds worth around 100 bln rupees from the
government in
March as contribution to the bank's rights issue.
The rise in interest rates since then has resulted in erosion and
going by
the MTM method, the losses in the first quarter works out to be around
7 bln
rupees, The Economic Times report said.
For the quarter ended March, the bank had to provide for
depreciation worth
1.68 bln rupees on these special bonds.
Technical analysts expect the stock to find immediate support at
1,110 rupees with good support at 1,060 rupees. On any upside, the
stock is
likely to face resistance at 1,190 rupees, they said.
Monday, the stock closed at 1,171.75 rupees, down 4.2% from close
Friday.
July futures closed at a 17-point discount to the spot with 4.7% rise
in open
interest.