Active Stocks
Tue Sep 26 2023 15:58:49
  1. Tata Steel share price
  2. 128.85 1.18%
  1. Tata Motors share price
  2. 619.75 0.19%
  1. HDFC Bank share price
  2. 1,537.65 0.39%
  1. State Bank Of India share price
  2. 594.3 0.03%
  1. ITC share price
  2. 442.4 -0.05%
Business News/ Markets / Stock Markets/  SBI share price: Experts give 'buy' tag as bank mulls fund raise. Should you buy?

SBI share price: The State Bank of India (SBI) shares edged lower in early morning deals on Tuesday. However, stock market experts are highly bullish on the stock in short to medium term as the largest commercial bank of India is going to consider fund raise through private placement. Experts believe that the net proceeds would help SBI to improve margins, which is already expected to improve due to expected rise in credit growth. They advised positional investors to buy SBI shares as the stock may go up to 660 apiece levels in medium term.

SBI share price outlook

Speaking on why one should add SBI shares in stock portfolio, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, "In the wake of interest rate pause announced by the Reserve Bank of India in its April monetary policy meeting and the status quo expected to remain maintained, credit growth of SBI and other banks are expected to remain maintained. Apart from this, SBI board is going to consider fund raise through private placement in its upcoming board meeting, which is going to create more liquidity at the largest Indian commercial bank. So, SBI share price is expected to shoot up in short to medium term and its current support placed at 560 apiece levels is expected to remain a sacrosanct support for the banking stock."

On what SBI share price chart pattern suggests, Anuj Gupta, Vice President — Research at IIFL Securities said, "SBI share price is looking bullish on chart pattern. Those who have this stock in portfolio are advised to maintain trailing stop loss at 575 apiece levels for immediate target of 595 to 600 per share levels. SBI shares may become highly bullish once it breaches 600 apiece levels on closing basis."


Giving 'buy' tag to SBI shares, Chandan Taparia of Motilal Oswal said, "Fresh investors can buy SBI shares at current market price and further accumulate if it falls around 570 apiece levels maintaining stop loss at 560 apiece levels. in short term, SBI share price may go up to 610 per share levels whereas in medium term or say in next six months, SBI share price may go up to 660 levels."

SBI fund raise details

In recent exchange communication, SBI informed about the fund raise plan citing, "Pursuant to Regulation 29(1)(d) and other applicable provision of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we inform that a meeting of the Central Board of State Bank of India is scheduled to be held on Friday, 9th June, 2023 to consider inter alia to seek approval for raising funds during FY24 through private placement mode by way of issuance of debt instruments (including capital instruments) in INR and/or any foreign currency."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 06 Jun 2023, 11:03 AM IST
Next Story
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App