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SKS Microfinance surged by 10 per cent to touch the upper limit on the BSE today after the stock was beaten down badly in the past 12 trading sessions.
The scrip ended 9.99 per cent higher at Rs 297.85, the upper limit on the BSE. During intra-day trade, the counter had slipped to its lowest-ever level of Rs 262 apiece.
On the National Stock Exchange, the scrip spurted by 10 per cent to touch the upper circuit of Rs 298.60. In terms of volume, 80 lakh shares of the company changed hands on the bourses during the day.
According to experts, today’s rise is basically a technical bounce-back. Also, after such a big sell-off, stocks generally see some correction.
In the previous 12 trading sessions, the SKS Microfinance stock lost nearly 48 per cent.
Earlier, global financial services majors JP Morgan and Credit Suisse had downgraded the company’s stock, adding to its woes.
The microfinance company had last week reported a net loss of Rs 70 crore for the fourth quarter ended March 31, 2011 on account of lower income from operations and high credit costs.
For the entire 2010-11 fiscal, its net profit declined by 36 per cent to Rs 111.63 crore from Rs 173.95 crore in the previous fiscal.
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