Yet another spell of fall: where does SBI go from here?

SBI a banking behemoth in India is trending down on Wednesday owing to downgrade by Morgan Stanley. Morgan Stanley has downgraded the stock and the target for the stock given by the institutional research firm is Rs 200 per share.

The largest PSU bank in India has recently been facing problems with issues related to safety of money of its clients and the bank had to recall debit cards from its client . SBI has recently ordered 7000 ATM machines from NCR.

Markets have been reeling under pressure taking cues from US presidential election results where increasingly the odds of Trump winning the elections is improving. It is widely anticipated that Trump win in US elections will create volatility in the financial markets.

Looking at the negative view of analysts on SBI and the negative sentiment in the market one can avoid investing in the stock at the current juncture. 10 to 20 per cent correction from here on may provide an opportunity for investors to enter the stock.

SBI is trading at Rs 250 per share, down by almost Rs 7 per share or 2.73 per cent on Wednesday. Over one year the stock is up by almost 6 per cent.