Sbi Leads Surge In Bank Scrips, Analysts Flay Hike

Banking scrips yesterday stole the limelight during trading, riding on the RBIs measures aimed at strengthening the rupee.

Three banking stocks - ICICI Bank, HDFC Bank and the Bank of Rajasthan - hit the upper end of circuit filter during intra-day trading on the NSE. Most other scrips firmed up. Surprisingly, the stocks flared up in early afternoon, much before the RBI actually announced these measures.

The scrips that firmed up include, SBI which closed at Rs 244.95 at the NSE over its previous close of Rs 235.85. The scrip clocked a turnover of Rs 272.59 crore. Corporation Bank closed at Rs 108.70 (Rs 101.05) and it registered a turnover of Rs 21.02 crore. HDFC Bank closed at Rs 79.50, a gain of 9.35 per cent.

 

In the depository segment, the SBI clocked a turnover of Rs 5.24 crore. The scrip closed at Rs 245.75 over its previous close of Rs 235, a gain of 4.57 per cent. It witnessed a large negotiated deal of 2.14 lakh shares on the NSE at a Rs 7 premium over the then prevailing price of Rs 138.

The Bank of Rajasthan scrip firmed up and closed at Rs 56.60 on the NSE over its previous close of Rs 51.45. Bank of Baroda closed at Rs 106.85 (Rs 101.55).

Analysts said the RBI decision will result in all banks seeing an improvement in bottomlines due to an increase in marginsin the short-term. However, on the whole, they said it was a harsh measure. And as a result, scrips dampened in kerb deals. Prices of key pivotals came crashing.

All the three measures are aimed at shoring up the rupee. These measures will tighten liquidity. Also, the central bank intends to reduce the arbitrage opportunity between the forex and money market, said Manish, analyst with SSKI Securities.

Though lending rates are not linked to bank rates, banks are likely to hike the same. The increase in CRR will have marginal impact, said Rajeev Varma, an analyst with W I Carr Securities.