Janmashtami 2020: On this auspicious day of Janamashtami, we bring to you a stock that acts just like a naughty Krishna during his childhood days. Zee Business Research Analyst Pooja Tripathi reveals this stock to channel viewers and also explains why it will be safe to call it a ‘Natkhat’ share today.
Tripathi says that this stock is from the banking sector and its name is RBL Bank. The movement in this share has been testing patience of the investors. This stock was slightly down in the morning but saw an uptick, gaining by almost 2 per cent.
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The research analyst said that the stock has been trading today amid highs and lows. But, this stock is quite popular with the investors.
In terms of Beta, the market movement is 1.5, she says. This stock has the tendency to surprise investors as it may see a sudden spurt or fall at any time.
The term Beta is used in context of market volatility of a stock. If a stock moves less than the market, the stock’s beta is less than 1. Though high beta stocks are supposed to be riskier, they have the potential to provide higher returns to the investors. A low beta stock poses less risk but also offers lower return potential.
The stock is being bought at lower levels, she said adding that the Foreign Institutional Investors (FIIs) have also been investing in this stock. In the June quarter of FY21, the FIIs have raised their stake in the bank from 28.35 per cent to 29.28 per cent.
Bank’s deposit base is strong. The analysts have estimated a growth of 15 per cent in FY21. Even the management has indicated that the bank is in the pink of health.
The only issue is that, a large part of its operations come from Maharashtra which has witnessed a severe onslaught of the coronavirus pandemic.
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This stock is currently trading down by 56 per cent from its 52-week high. At 3 pm, the stock was trading at Rs 185 on the BSE, up by over 2.15 per cent.