Foreign fund buying boosts State Bank

DALAL STREET SPIKES

State Bank of India stock climbed over 2 per cent in the intra-day trades on aggressive fund-based buying.

The stock of India's largest public sector bank was up 2.08 per cent to close at Rs 605.35, after hitting an intra-day high of Rs 640 after the RBI permitted FIIs to make fresh buying in the stock.

More than 25 lakh shares changed hands at the counter on the BSE and over 50 lakh shares were traded on the NSE on Thursday.

According to analysts, the attractive valuation, falling NPAs and increase in credit offtake are leading fresh buying in most of the bank stocks.

RBI allowed fresh FII buying in SBI as the combined holding of FIIs/NRIs and Persons of Indian Origin declined below the limit of 20 per cent.