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State Bank sizzles on FII limit hike rumour

Mumbai, Feb. 6: Fuelled by the rumour that the forthcoming budget will relax the foreign institutional investment limit, the State Bank of India (SBI) counter today witnessed a bull run on on the Bombay Stock Exchange (BSE).

The scrip went up by 4.4 per cent to close at Rs 306.40 after opening at Rs 293.50. It had earlier shot up to the day’s high of Rs 308.40. The counter was among the top five traded counters in the BSE today and it witnessed 31.74 lakh shares being transacted, yielding a turnover of Rs 95.93 crore.

“There is a speculation that Singh may raise the 20 per cent FII ceiling in the equity of the country’s largest bank in the forthcoming budget. This drove SBI’s share prices even as other banking scrips faced selling pressure during the day,” a broker pointed out.

He added that the prime reason for banking stocks to come under selling pressure was due to reports that the finance ministry was cautioning banks that they face a high interest rate risk.

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