Latest News

SBI becomes 5th largest company in India


➡️ Click here to join our Whatsapp Group

State Bank of India (SBI), a state-run lender, has achieved a significant milestone by becoming the seventh Indian listed company to surpass a market capitalisation of Rs 8 lakh crore. This achievement highlights the bank’s strong performance and investor confidence in its future prospects.

Record High Share Price and Impressive Year-to-Date Growth

On June 3, SBI’s shares reached a fresh record high of Rs 900.15 on the Bombay Stock Exchange (BSE). This represented a substantial increase of 8.3 percent in morning trade, making it the bank’s best day since September 2021. The share prices of SBI have surged by over 40 percent so far this year, reflecting the positive sentiment surrounding the bank.

Joining the Ranks of Other Major Indian Companies

SBI now joins the ranks of other esteemed Indian companies that have achieved a market capitalisation of over Rs 8 lakh crore. These include Reliance Industries, Tata Consultancy Services, HDFC Bank, Bharti Airtel, Infosys, and ICICI Bank. This accomplishment further solidifies SBI’s position as a leading player in the Indian market.

Positive Market Sentiment and Political Factors

The surge in SBI’s share prices can be attributed to positive market sentiment and political factors. Following the release of exit polls on June 1, which indicated a landslide victory for the BJP-led NDA (National Democratic Alliance), PSU (public sector unit) stocks, including SBI, experienced a significant boost. Most exit polls projected that Prime Minister Modi’s government would secure over 350 Lok Sabha seats, surpassing many brokerage firms’ bullish market scenarios. Stocks tied to the government’s growth plans, particularly those in capital expenditure or public sector units, have witnessed substantial growth over the past year and are expected to continue rising, according to market experts.

Potential for Continued Growth in Domestic Sectors

Analysts at Nomura foresee a potential for sustained growth in domestic sectors, particularly infrastructure and manufacturing, due to the government’s focus on capital expenditure and fiscal consolidation. They predict that these sectors will outperform in the near future, presenting investment opportunities.

Positive Outlook for State Bank of India

In a recent note on State Bank of India, BoB Cap highlighted the bank’s healthy business growth, stable margins, and asset quality, which are expected to contribute to improved performance. They anticipate a stable net interest margin (NIM) of 3 percent and a return on assets (RoA) and return on equity (RoE) of 1.1 percent and 17 percent, respectively, by FY26. Overall, market experts maintain a positive growth outlook for SBI, acknowledging its strong performance across various segments.

Leave a Reply

Your email address will not be published. Required fields are marked *