Experts suggest selling SBI Card shares now, and buying after dust settles

Experts suggest selling SBI Card shares now, and buying after dust settles

Experts suggest selling SBI Card shares now, and buying after dust settles

Experts suggest selling SBI Card shares now, and buying after dust settles

The listing of SBI Cards and Payment Services was largely on expected lines given the market turmoil which wiped out around Rs 36 lakh crore of investor wealth in about 2 months due to novel coronavirus spread.

The stock opened nearly 13 percent lower at Rs 658 on the BSE against issue price of Rs 755. It managed to hit its issue price intraday in morning trade, but could not hold the same for long.

At the time of publishing this copy, it was trading at Rs 730, down 3.3 percent from IPO price. The total traded share volume on exchanges stood at around 4.8 lakh crore so far.

Given the weak market conditions, most experts advised selling shares of SBI Card now and holding cash to buy the same later once the coronavirus-led dust settles down as they all are bullish on the stock for long term.

"We suggest investors who receive allotment may exit once at listing price," Manali Bhatia, Senior Research Analyst at Rudra Shares & Stock Brokers told Moneycontrol.

Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor and Prashanth Tapse, AVP Research at Mehta Equites also said investors should try to book listing gains for the time being and prefer to seat in liquid cash position than holding the stock.