Number of retail investors in SBI jumps, stock hits 52-week low

Retail investors are back in the market, which has seen a correction of around 10 per cent in January–March quarter. The latest shareholding pattern of State Bank of India for January-March 2018 period shows retail investors and mutual funds bought shares as the bank’s equity shares touched a new 52-week low in March 2018.

There are 81,765 new retail investors holding SBI stock during January-March compared to the previous quarter, as per the shareholding pattern disclosed to stock exchanges.

The total number of individual shareholders with share capital of less than Rs 2 lakh swelled to 15,44,735 from 14,62,970. SBI shares touched a 52-week low of Rs 232.50 on March 23, 2018. There was a gradual decline in SBI share price during the fourth quarter of FY17-18 after the bank announced its third quarter performance which was not liked by the market and later on in March Punjab National Bank fraud came to light.

For many retail investors this was a right opportunity as the stock had been trading at very high price during the last bull run not providing a chance to buy then.

SBI shares had gained more than 20 per cent in a day on October 25, touched a high of Rs 351.50 on October 26, 2017 a day after government had announced PSU bank’s recapitalisation plan, making it very expensive.

SBI stock is considered the indicator of health of Indian economy, being the largest bank. The stock has bounced back several times after a touching a new low and rewarded investors.

Mutual funds also raised their stake in SBI from 9.98 per cent to 10.92 per cent during the January-March quarter.
However, insurance companies and foreign portfolio investors dumped SBI shares during the quarter. Insurance companies’ joint shareholding declined to 11.18 per cent from 11.73 per cent. Life Insurance Corporation of India reduced its stake from 10.55 per cent to 9.98 per cent. The foreign portfolio investors also reduced their combined stake from 12.73 per cent to 11.16 per cent during the quarter. The total number of FPIs holding SBI shares also came down from 760 to 720 during the quarter.

Ravi Ranjan Prasad