SBI Surpasses TCS to Become India’s Fourth Most Valuable Company
On Wednesday, the State Bank of India (SBI) overtook Tata Consultancy Services (TCS) to become the fourth most valuable listed company in India. SBI’s stock reached a new all-time high of Rs 1,187 on the NSE after jumping 3.8% in a single day.
This surge added over Rs 38,000 crore to SBI’s market value, bringing its total market capitalization to Rs 10.94 lakh crore.
Market Performance and Stock Trends
Trading activity for SBI was very high today. The total volume of shares traded was nearly double the 30-day average, with a turnover reaching Rs 2,500 crore.
Key highlights of the stock’s performance include:
- Weekly Gains: The stock has climbed 11% so far this week.
- Analyst Targets: SBI is now very close to reaching the average 12-month price target of Rs 1,210 set by market analysts.
- RSI Levels: The Relative Strength Index (RSI) is currently at 76, which suggests the stock is in “overbought” territory.
While SBI soared, TCS shares dropped by over 2% during a general slump in the IT sector. TCS ended the day with a market value of Rs 10.54 lakh crore. SBI remains the second most valuable lender in India, trailing only HDFC Bank, and staying ahead of ICICI Bank, Kotak Mahindra Bank, and Axis Bank.
Why Is SBI Performing So Well?
SBI’s momentum is driven by strong financial results for the December quarter. Major brokerages have given positive feedback, citing healthy loan growth, steady asset quality, and better profit margins.
Key financial figures from the latest report include:
- Net Interest Income (NII): Grew by 9% year-on-year to Rs 45,190 crore.
- Net Interest Margin (NIM): Rose to 2.99%, with expectations to cross 3% in the next quarter.
Future Outlook and Growth Guidance
SBI Chairman CS Setty expressed confidence in the bank’s future. He expects credit growth to remain strong and has raised the bank’s growth guidance for FY26 to 14-15% (up from the previous 12-13%).
The bank is seeing high demand for loans across all areas, including:
- Retail loans
- MSME financing
- Corporate credit
According to Bloomberg data, the outlook remains positive. Of the 49 analysts tracking the stock, 42 recommend a “Buy” and seven suggest a “Hold.” Current estimates suggest a further upside potential of about 2% based on the target price of Rs 1,210.
Also Read : Sensex Today: Market Gains Halted by Weakness in Top IT and Banking Shares
