Money on the markets
A maturing market amid the mayhem
SBI’s chairman said that earnings of the bank are seen rising 30-35 percent in the current quarter, with retail loans growing at about twice the pace from the year earlier.
The banking index, which ended just 0.4 percent higher, has gained over 90 percent since April.
Shares in SBI closed at 1894 rupees, and have gained 78 percent since April. In terms of returns, India’s top private sector bank ICICI has outperformed SBI with a return of 138 percent during the same period.
The BSE Sensex closed 2.28 percent lower on Friday, extending losses for the week to 3.25 percent.
Leading financial stocks like ICICI Bank and SBI pulled the Banking Index down, which registered a drop of nearly 4 percent – its 4th fall this week.
Investor sentiments also had plenty of support from strong global markets.
The benchmark posted a near 500-points gain with stocks like ICICI, HDFC and ITC surging. The Nifty index rose by over 140 points.
Profit-booking continued in a market that has risen sharply since early March, dragging the benchmark down by 174 points to 15,274.
Weak global cues also dampened sentiments and the Sensex ended 2.9 percent down at 14, 666. The Nifty closed 3.4 percent lower.
The outcome of the elections this weekend weighed on investors’ minds as the benchmark slipped nearly 200 points to close at 11,683.
Some index heavyweights took a beating – Reliance Industries slipped 1.98 percent, SBI ended 4.8 pct lower and L&T dropped 2.8 percent.
The coalition government, which faces general elections by May, is likely to focus on measures to shore up the flagging economy and stem job losses in the interim budget.