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SBI’s parabolic rally has seen MFs book profits. Will investors continue to bet on Khara’s optimism?

SBI’s parabolic rally has seen MFs book profits. Will investors continue to bet on Khara’s optimism?
SBI’s parabolic rally has seen MFs book profits. Will investors continue to bet on Khara’s optimism?
Dinesh Kumar Khara, chairman, State Bank of India; image credit: Bureau

Synopsis

Conventional investment wisdom suggests that sharp rallies are usually followed by a time or price correction as smart money shifts into stocks that are likely to end a period of underperformance and start a fresh uptrend. But SBI chairman’s unwavering optimism tells a different story.

Around three years ago, when State Bank of India (SBI) chairman Dinesh Kumar Khara said that ‘the elephant was ready to dance’, Dalal Street was divided into two camps – those who believed him and those who didn’t. At the time, SBI shares were hovering around INR400 apiece. On Friday, SBI closed at INR746.50 on the NSE, registering nearly a 46% jump during the last one-year period as against the Nifty Bank’s more than 18% gain. When Khara made
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The Economic Times