SBI slips as Reserve Bank bars fresh FII buying

DALAL STREET SPIKES

State Bank of India stock slipped on profit-booking after RBI barred fresh FII buying into the stock.

The stock, which had witnessed a sharp run in the past few days on aggressive buying by FIIs, lost 2.91 per cent in Thursday's trading to close at Rs 587.30.

However a head of research with a leading broking firm said, "While Thursday's activity on SBI counter was purely news driven, I expect banking sector stocks to do well as lot of these stocks are trading at a lower P/E and the risk reward ratio is favourable."

Contrary to the trend seen at the SBI counter, private sector bank stocks such as ING Vysya Bank and Karnataka Bank witnessed a sharp rally on Thursday. ING Vysya bank spurted a massive 16 per cent to Rs 490 after the company announced a 3:1 rights issue.