Why SBI Cards share rose over 7% today- Business News

SBI Cards and Payment Services share rose over 7% today after brokerage Macquarie expressed bullish stance on the firm. The brokerage also said SBI Cards and Payment Services was expected to become a major beneficiary of Citigroup’s exit from retail banking operations in India.  

The large cap stock opened with a loss of 2.56% at Rs 882.65 against previous close of Rs 905.85 on BSE.

The stock touched an intraday high of Rs 974.75, rising 7.61% on BSE. The share trades higher than 5 day, 20 day, 100 day and 200 day moving averages but lower than 50 day moving averages.

In one year, the stock has gained 83.04% and risen 14.5% since the beginning of this year.

Market cap of the firm rose to Rs 91,550 crore on BSE.

Macquarie said the recent correction in the stock offers an excellent entry point. It gave target price of Rs 1,050 for the share.

The international brokerage in a note said with Citigroup’s exit, 2.7 million credit cards were up for grabs.

It further said there may be lot of interest among SBI Cards, ICICI Bank, Axis Bank, RBL Bank, IndusInd Bank, DBS and IDFC First Bank.

SBI Cards is India’s second-largest credit card issuer after HDFC Bank and has issued 11.6 million cards.

Citigroup to exit bank’s consumer operations in India