Sell SBI: Hitendra Vasudeo

Sell SBI: Hitendra VasudeoStock market analyst Hitendra Vasudeo of stockmechanics.com has maintained 'Sell' rating on State Bank of India (SBI) stock to achieve a target that lies between Rs 1601-Rs 1506.

According to Mr. Vasudeo, investors can sell the stock around Rs 1660-Rs 1696 with a stop loss of Rs 1720.

Today (June 15), the stock opened at Rs 1623.90, as against its last closure of Rs 1637 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 143.67 and 11.46 respectively. The share price has seen a 52-week high of Rs 1935 and a low of Rs 894 on BSE.

Mr. Vasudeo is of the view that investors should sell the stock today to avoid loss.

After selling the stock, the interested investors can enter the stock again at a low price, for medium or long term prospective.

State Bank of India (SBI), on June 13, declared that it will slash depository rates across all tenors by 25 basis points, with effect from Monday (June 15).

For tenure of 181 days to below one year, the new depository rates stood at 6.25% from 6.50% whereas for one-year to below 2-years, the rate has been slashed from 7.25% to 7%.    

For two-years to less than 1,000 days, the new rate is 7.25% as compared to 7.50% whereas for a tenure of 1,000-days, the rate has been slashed from 7.75% to 7.50%.

For 1,001 days to below 3 years, the new rate is 7.25% from the previous 7.50%.     

The rate has been slashed to 7.25% from 7.50% for three years to below 5-years.  For five years to below 8 years, the rate has been reduced from 8% to 7.75%, the statement said.    

For a tenure of 8 years and up to 10 years, the new rate is 8% vs 8.25%.    

An extra 0.50% for deposits of resident Indian senior citizens for tenures of one year and above would continue for term deposits of amount below Rs 10 million.

SBI, on June 08, said that it will establish `several` other funds to cash in on the region after rolling out an infrastructure fund in partnership with Macquaire and IFC.

With a view to stretch out to all major centres across India, SBI is likely to double up the total number of its divisions for retail sales of gold coins to 1,100 during the existing financial.