Should you Buy SBI ( State bank of India ) now ???

The big question with current market after todays crash is that should one buy the India's largest bank State bank of India at current level. The stock is now trading at 52 year low of 1,787 which is around 50% lower than its 52 week high of around 3500.

My answer to the above question is yes one should start buying state bank of India at current level, as the stock is currently at very cheap price which we may not get in coming days. As the mood of global market is not good and RBI is bitter instance of increasing the interest rates has put a negative outlook on the banking industry in near to medium term, but the situation is not to get away but to get the stock as such low levels. If market sentiment starts to feel better they this is the stock which would lead the rally and there would not be stopping after that. Moreover, SBI is planning a 20,000 Cr rights issue which government will only clear after the market mood cheers up and SBI moves in the range of 2500 as we have seen in the case of ONGC the govt. has delayed the follow up issue due to lower valuations.

Hence, start putting the SBI in your demat account and see the value of portfolio grow to higher valuation.