SBI may test Rs 1800-2000: Baliga

Ambareesh Baliga of Karvy Stock Broking is of the opinion that in SBI the upsides from here for the next one-two months maybe limited but in next 9-12 months one can see a level of Rs 1800-2000.

Baliga told CNBC-TV18, "When most of the people are dumping the banking stocks, we were in fact talking of inflation peaking out by September-October based on which possibly we may not have anymore interest rate hikes and interest rates also peaking out by then and possibly by March-April next year you may actually see interest rates moving down. So this clearly puts an end to these Mark to Market (MTM) losses, which in fact one of the reasons for people to downgrade the banking sector."

He further added, "From that point of view in the last three-four months whenever people were dumping banking stocks they are saying possibly like a very good contrarian bet at that point of time. That is exactly what we are doing. In fact we have picked up as we are at much lower levels but at these levels I think we have had a good move in a stock like State Bank of India, so possibly the upsides from here for the next one-two months maybe limited. But if you are talking of slightly longer-term, say around next 9-12 months, we could actually see levels of closer to Rs 1,800-2,000 in SBI."