Fresh FII investments news shores up SBI

DALAL STREET SPIKES

The State Bank of India witnessed huge buying interest on Wednesday after the report that the RBI has permitted fresh FII investments in the stock.

The State Bank of India counter hit a high of Rs 605 and a low of Rs 582 before closing at Rs 593, gaining 3.91 per cent over Tuesday's close.

More than 25.38 lakh shares were traded on the BSE. Brokers said that investors lapped up the scrip on Wednesday on hopes that FIIs would buy and drive the price further. Profit-taking at higher levels led to some fall at the end of the trading session.

The RBI notified that fresh FII buying in SBI would be allowed, but FIIs have to obtain prior permission before purchasing further SBI shares.

RBI allowed fresh FII buying in SBI as the aggregate holding of FIIs/NRIs and Persons of Indian Origin (PIOs) declined below the limit of 20 per cent, the notification said.