Nirmal Bang Research has suggested investors to 'sell' State Bank Of India (SBI) stock as there are full chances of a downward trend in this stock in the coming days.

According to report, investors can sell the stock with a strict stop loss of Rs 1,345 to achieve a target that lies between Rs 1,305-1,255.

Today (May 11), the stock opened at Rs 1,389 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 130.14 and 10.32 respectively. The share price has seen a 52-week high of Rs 1768 and a low of Rs 894 on BSE.
 
The report also suggested that it’s profitable to sell the stock at the said level as the counter is under huge pressure.

The report added if the stock fell below Rs 1,250, it may see more weakness. So the investors must sell SBI stock.

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

SBI has recognized its main challenges of the existing fiscal to be meeting up capital needs, taking the cost-to-income percentage in hand, and absorbing new workers.

Previously, the bank said that it aims to lift around Rs 200 billion in 2009-10, and might require Rs 500-700 billion by the next five years.

The biggest commercial bank reported a substantial growth in standalone net profit for the three-month period ended March 2009.

During the period, SBI’s profit increased 45.62% to Rs 27,423.10 million, as against Rs 18,832.50 million during the same quarter last year.

Interest earned during the period increased 27.74% to Rs 173,423.90 million, whereas total income surged 34.57% to Rs 220,606.10 million.

SBI recorded earnings of Rs 43.23 per share in the quarter, posting 24.76% growth over prior year period.

Moreover, the bank has decided to raise its market share to a great extent with the establishment of a centralized inward remittance cell (IRC) in Kolkata.

It operates 17% of the country’s $45-billion inward remittances market

State Bank of India, on May 04, slashed its depository rates by 0.25% on all terms.

With this, one-year to less than two-year deposits will now carry a rate of 7.5%.

In the same way, deposits with two years to less than 1,000 days maturity, will carry an interest rate of 7.75%, where those having 1,000-days term will provide a rate of 8%.
 
The bank has also slashed rates for 1,001 days to below 3-years and 3-5 years deposits to 7.75%.