Num­ber of re­tail in­vestors in SBI jumps, stock hits 52-week low

Financial Chronicle - - FRONT PAGE - RAVI RANJAN PRASAD

RE­TAIL in­vestors are back in the mar­ket, which has seen a cor­rec­tion of around 10 per cent in Jan­uary–March quar­ter. The lat­est share­hold­ing pat­tern of State Bank of In­dia for Jan­uaryMarch 2018 pe­riod shows re­tail in­vestors and mu­tual funds bought shares as the bank’s eq­uity shares touched a new 52-week low in March 2018.

There are 81,765 new re­tail in­vestors hold­ing SBI stock dur­ing Jan­uaryMarch com­pared to the pre­vi­ous quar­ter, as per the share­hold­ing pat­tern dis­closed to stock ex­changes.

The to­tal num­ber of in­di­vid­ual share­hold­ers with share cap­i­tal of less than Rs 2 lakh swelled to 15,44,735 from 14,62,970. SBI shares touched a 52-week low of Rs 232.50 on March 23, 2018. There was a grad­ual de­cline in SBI share price dur­ing the fourth quar­ter of FY17-18 af­ter the bank an­nounced its third quar­ter per­for­mance which was not liked by the mar­ket and later on in March Pun­jab Na­tional Bank fraud came to light.

For many re­tail in­vestors this was a right op­por­tu­nity as the stock had been trad­ing at very high price dur­ing the last bull run not pro­vid­ing a chance to buy then.

SBI shares had gained more than 20 per cent in a day on Oc­to­ber 25, touched a high of Rs 351.50 on Oc­to­ber 26, 2017 a day af­ter gov­ern­ment had an­nounced PSU bank’s re­cap­i­tal­i­sa­tion plan, mak­ing it very ex­pen­sive.

SBI stock is con­sid­ered the in­di­ca­tor of health of In­dian econ­omy, be­ing the largest bank. The stock has bounced back sev­eral times af­ter a touch­ing a new low and re­warded in­vestors.

Mu­tual funds also raised their stake in SBI from 9.98 per cent to 10.92 per cent dur­ing the Jan­uaryMarch quar­ter.

How­ever, in­sur­ance com­pa­nies and for­eign port­fo­lio in­vestors dumped SBI shares dur­ing the quar­ter. In­sur­ance com­pa­nies’ joint share­hold­ing de­clined to 11.18 per cent from 11.73 per cent. Life In­sur­ance Cor­po­ra­tion of In­dia re­duced its stake from 10.55 per cent to 9.98 per cent. The for­eign port­fo­lio in­vestors also re­duced their com­bined stake from 12.73 per cent to 11.16 per cent dur­ing the quar­ter. The to­tal num­ber of FPIs hold­ing SBI shares also came down from 760 to 720 dur­ing the quar­ter.

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