Karvy Stock Broking Limited has maintained ‘sell’ rating on State Bank of India (SBI) stock as there are full chances of a downward trend in this stock.

According to Karvy, investors can sell the stock between Rs 1375-1380 with a strict stop loss of Rs 1400 to achieve an intraday target that lies between Rs 1300-1310. 
  
Karvy feels that SBI stock would remain under high pressure due to existing market condition. 

Today, the stock opened weak at Rs 1375, against its last closure at Rs 1405 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 109.38 and 12.99 respectively. The share price has seen a 52-week high of Rs 2387.60 and a low of Rs 1007 on BSE. 

Karvy also suggested that if the stock fell below Rs 1295, it may see more weakness. So the investors must sell SBI stock today. After selling the stock in today’s session, the interested investors can buy the stock again at a low price, for medium term prospective to reap good profits.

The refusal of the $700 billion financial rescue plan of US govt by the House of Representatives and the resultant breakdown in worldwide markets had a similar effect on the Indian bourses.

SBI, on Sep 29, has increased the fixed deposit rate for 1,000 days maturity by 1% to 10.50%.  

The bank has raised the depository rates in between 2-3 year maturity to 12.50% from 9.5%. But, on deposit having 2-3 year maturity, old persons would get an extra interest benefit of 0.5%.

The bank has also framed up an aggressive blueprint for inorganic growth marking its possible acquisitions, to swell its functioning out of the country.

The sources said that State Bank of Indore and State Bank of Patiala may be merged with State Bank of India (SBI). SBoP is completly owned by SBI. In State Bank of Indore, SBI holds 98.05% equity stake. SBH is another unlisted unit that is totally owned by SBI. 

Opposing the amalgamation of associate banking institutions of SBI, Officers’ Association of State Bank of India has called for an indefinite nationwide strike from October 20, 2008.

SBI, on Sep 11, said that it is waiting for the Cabinet authorization for amalgamation of its associate State Bank of Saurashtra (SBS) with itself.

The board of both banks had already approved the proposed merger in August 2007 despite opposition from a section of bank staff.