New Delhi: Shares of State Bank of India (SBI) extended its gaining streak for the second straight session on Wednesday, rising nearly 4 percent, amid positive guidance by the company.
The stock gained 3.56 percent to end at Rs 263.20 on BSE. During the day, it surged 6.11 percent to Rs 269.70.
On NSE, shares of the company moved up by 3.76 percent to settle at Rs 263.45.
"PSU banks did well as SBI gaining another 3.6 percent on Wednesday 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 on Tuesday rose by nearly 5 percent, 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 the government," Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
The country's largest lender SBI on Tuesday reported a record standalone net loss of Rs 7,718 crore in the fourth quarter ended March, mainly due to the 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 percent and a deposit growth of 9 percent.
"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 percent, Bank of Baroda 2.56 percent, UCO Bank 1.41 percent and Corporation Bank 1.01 percent on the BSE on Wednesday.
Updated Date: May 23, 2018 19:10 PM