As the exit polls primarily point at a clear cut win for the NDA led BJP government and Modi retaining power at the centre once again after the 19th Lok Sabha election results are announced on Thursday, May 23, 2019. Here is what experts say about the SBI stock which primarily coupled with heavyweights led the Sensex to rally as much as 1200 points today.
The stock markets are already said to have discounted the win for Narendra Modi and no further upside shall be seen after today.
Soon, after the opening of indices, the stock made a new high in the stock of Rs. 342.90 and later zoomed further to an intra-day high of Rs. 345.05 on the BSE. On the NSE, the stock made an intraday high of Rs. 345.80.
Outlook for the SBI stock
In a year's time as per a report, the lender has risen in price by as much as 40% and there is seen further upside in the stock of as much as 24%.
As per CLSA's view, after SBI announced its results, the company has shown improvement in asset quality and this will reflect in its credit costs and thus provide an impetus to the bank's earnings going forward.
Though there persist some risk elements still with low ROA-base as well as risk due to resolution of select cases taken to NCLT.
And despite all this, the global company has maintained a new target price of Rs. 390 per share for SBI.