Block deal among FIIs pushes State Bank of India 2.77%

DALAL STREET SPIKES

The SBI scrip saw a price-gain of 2.77 per cent to Rs 954.60 after news of a block-deal of more than 34 lakh shares at a 15 per cent premium. The volumes too went up nearly five times to 52 lakh shares.

The block-deal at Rs 1070, was at a 15 per cent premium to yesterday's closing price of Rs 928, but well below Tuesday's closing price of Rs 954.60. Investor sentiment on the stock improved after the institutional transaction, as it is likely to have involved FIIs on the buying side.

The bank's FII stake limit of 20 per cent has already been reached, leaving such investors with the only option of purchasing from an existing FII at such premiums.

In Tuesday's trading, which saw a fluctuation of nearly Rs 40 in the share price on the BSE, the scrip also touched a high of Rs 976.90. It was quoted at Rs 903.60 a week ago.

The stock started rising from Rs 600 levels ten months ago and hit its current Rs 875-925 range by October last year, after hitting a high of Rs 961.95. The scrip is currently on an upswing which started from late February and has gained nearly Rs fifty since the beginning of the month.