Enter SBI at around Rs 1900-2000: Anand Rathi

Enter SBI at around Rs 1900-2000, says AK Prabhakar, Senior Vice President-Equity Research, Anand Rathi.

Prabhakar told CNBC-TV18, "Whenever there is a change in the management normally it is not good for PSU banks and that is what we have seen in State Bank of India. And the stock has made an exhaustion gap at the higher level and recently also there was a gap down level and it has taken a temporary support around Rs 2165 levels.”

He further added, “But sustaining at these levels is very difficult because everybody thinks State Bank is a value but whatever management meets is happening one more quarter of balance sheet cleaning can happen. So till then there can be some pressure in the bank but around Rs 2000 or 1900 levels it will be a very good entry point for a long-term investor.”

Disclosure: I don’t own the above stock but our clients will own stocks.


Source :  Moneycontrol

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02/06/2011    Thursday

Market Updates

Saikat Das Moneycontrol.com

Securities and Exchange Board of India is lagging far behind in its aim to get more retail investors into the stock market, its new chairman UK Sinha said on Thursday. The market regulator has now embarked on a strategy to simplify market investments in its bid to increase retail participation.

"India has 8% retail participation in market investments as against 20-33% in South Korea and China. We have huge work to do to increase retail participation," Sinha said.

The SEBI chief is also for increased penetration of capital market investments in smaller towns.

Presently only 2.6% of India’s total savings come to capital market, and 85% of total trading is from only 5 cities.

Removing bottlenecks for investing in capital markets is a key to getting more retail participation, Sinha said. For instance, the market regulator is working to simplify disclosures in initial public offers, which currently are too voluminous and unstructured, he said.

Also Read: UK Sinha's first interview after taking over as chairman of SEBI

Source :  Moneycontrol