
Shares of Central Bank of India dropped more than 7% in early trade on Wednesday, January 15, after experiencing a significant rally in the previous session. The stock fell to ₹51.11, declining by ₹4.23 from the previous close of ₹55.34.
The downturn follows a substantial surge in state-run banks (PSBs), including Indian Overseas Bank, UCO Bank, IDBI Bank, Punjab & Sind Bank, and Bank of Maharashtra, which saw gains of up to 20% in the previous session. These counters rallied sharply on reports suggesting that the government is likely to approve strategic stake sales in select PSBs.
However, clarity on the fundraising mechanism, which will involve a Qualified Institutional Placement (QIP) process executed in small tranches starting from the March 2024 quarter, triggered heavy profit booking by investors.
The stock traded within a day range of ₹50.65 to ₹54.00, with a market capitalization of ₹443.42 crore. This pullback is seen as a correction after the sharp gains recorded earlier.
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