The share price of State Bank of India (SBI) has been losing ground at major bourses ever since the declaration of its first-half results.
The share closed at Rs 211 on the Bombay Stock Exchange last week, down Rs 6 over the previous week.
On the National Stock Exchange, the scrip ended at Rs 213, a loss of Rs 5 against the previous figure.
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The scrip was traded at Rs 243 on the BSE on November 21, the day the banks results to September 30, 1997, were announced.
However, dismal figures have ensured that the scrip price moved southwards ever since. SBIs net profit rose 9.97 per cent on an equity of Rs 52.30 crore to touch Rs 704.70 crore in the first half of 1997-98, compared with Rs 640.80 crore in the corresponding period in 1996-97.
Institutional interest at the counter, too, seems to be on the wane, with a lot of off market deals having been struck at a discount to the prevailing market price.
This is in sharp contrast to the frenzied buying interest witnessed a few months back on rumours that the FII investment ceiling in the scrip had been raised. The stock had touched Rs 330 then.
Technically, the SBI share is among the best in the banking sector. But the bearish phase of the economy has affected the profitability of the sector what with credit offtake continuing to languish.
With SBI being among the biggest players in the field, it is not surprising that its bottomline, too, has been adversely impacted, said an equity analyst with a leading foreign brokerage.
But once the situation improves, the bank will be the one of the major beneficiaries of an economic revival.
But its immediate prospect for next six months are unlikely to be bright as economic activity is not likely to pick till then, he added.
Another banking analyst with a leading foreign institutional investor (FII) said: Though the SBI stock at the current level looks quite attractive for long term investment, the immediate appreciation in the banking scrip may not be possible, since the overall stockmarket sentiment at now down.