Stock market analysts have suggested investors to ‘sell’ SBI stock as there are full chances of a downward trend in this stock.

According to them, investors can sell the stock with a strict stop loss of Rs 1121 to achieve an intraday target of Rs 1082.

Analysts feel that SBI stock would remain under high pressure due to existing market condition. The stock also remained weak on Tuesday (Feb 17), closing below its 21-day moving average.

Today (Feb 17), the stock opened weak at Rs 1,090, as against its last closure at Rs 1,100.35 on the Bombay Stock Exchange (BSE) on Monday (Feb 16). Current EPS & P/E ratio stood at 130.14 and 8.33 respectively. The share price has seen a 52-week high of Rs 2308 and a low of Rs 991.10 on BSE.

Karvy also suggested that if the stock fell below Rs 1075, it may see more weakness. So the investors must sell SBI stock in today’s session. After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

Mr. OP Bhatt, SBI chairman, on Feb 6, said that the bank margins would remain unaffected by its decision to slash home loan rates to 8%.

He disclosed that SBI had plans to raise capital, but only after elections.

On Feb 02, SBI has offered to provide loans to all new home buyers at a fixed rate of 8%, the lowest rate offered by any lender.

The said rate will be applicable to all new borrowers regardless of the loan amount. But, the fixed rate of 8% on home loans will be effective for only one year.

In Jan 2009, SBI declared that the central board of the bank (SBI) and boards of SBI Factors & Commercial Services (SBI Factors) and Global Trade Finance (GTFL), both being divisions of SBI have decided to unite SBI Factors with GTFL, subject to necessary regulatory approvals.

On a consolidated basis, SBI recorded a growth of 51.34% in its consolidated net profit after minority interest of Rs 36,076.10 million for the three month period ended December 31, 2008.

The consolidated net interest income earned grew 38.29% to 254,945.5 million for the same period.

In standalone net profit for the period under review, the bank posted an increase of 37.03% to Rs 24,784.20 million from Rs 18,086.40 million in the same quarter previous year.

Interest earned for the quarter jumped 42.34% to Rs 180,303.40 million, while total income for the quarter rose 38.35% to Rs 212,559.00 million, when compared with the prior year period.

The company reported earnings of Rs 39.04 a share during the quarter, registering 13.59% growth over prior year period.