SBI Logs Biggest Single-Day Gain in 19 Months Following Strong Q3 Results
Agencies report that the price targets set by most brokerages forecast a 7-14% increase in State Bank of India’s stock price based on Monday’s closing figures.
Mumbai: State Bank of India (SBI) experienced a significant surge of over 7% on Monday, marking its largest single-day gain in 19 months. This rally came after the nation’s largest lender reported unexpectedly robust results for the December quarter, leading to a flurry of price target upgrades from analysts and a wave of bullish positions in its stock futures.
Strong Performance Compared to Peers
– Analysts noted that SBI’s impressive performance relative to private-sector rivals and the accumulation of derivatives positions suggest further potential for growth.
– SBI’s shares rose by 7.6% to ₹1,148, leading the Nifty gainers’ list, while the benchmark index itself increased by 0.7%. This was the highest daily gain since June 2024.
Yuvraj Choudhary, a research analyst at Anand Rathi Institutional Equities, highlighted key metrics, stating:
– SBI reported strong loan book growth of 15.6%, outperforming HDFC Bank and ICICI Bank.
– The bank has also revised its FY26 credit growth forecast upwards to 13-15%, an increase from the previous estimate of 12-14%.
– SBI continues to demonstrate remarkable outperformance in asset quality, alongside robust operational performance.
Analysts Turn Bullish Post-Results
Following the positive Q3 results, brokerage firms have grown increasingly optimistic about SBI’s stock. Nuvama described SBI as a top buy after its exceptional December-quarter performance, raising its target price from ₹1,150 to ₹1,250. Notably, SBI shares have surged 39.4% over the past six months, while the Nifty has only seen a 5.2% increase during the same period.
Analysts indicate that the stock has maintained an upward trajectory since September 2025, buoyed by a consistent build-up of long positions in the recent derivatives series.
Futures Indicate Continuing Momentum
SBI futures showed a remarkable 14% rise in open interest, predominantly driven by bullish bets. Ruchit Jain, head of Technical Research at Motilal Oswal Financial Services, mentioned:
– Even after a gap-up opening, fresh buying in SBI indicates that the uptrend remains intact.
– He identified ₹1,080 as immediate support and foresees a gradual climb towards ₹1,200 in the near term.
Most brokerages predict a 7-14% upside in SBI’s stock price based on Monday’s closing. Analysts at Nomura noted:
– A substantial portion of the re-rating has already occurred, and we believe the forthcoming upside will be primarily driven by earnings rather than multiple expansion.
– The brokerage upheld its ‘Buy’ rating, increasing its target price to ₹1,235.
Conclusion
The strong Q3 results have propelled SBI to achieve its biggest single-day gain in 19 months, with analysts forecasting an optimistic future for the stock. As more brokerages raise their price targets and bullish sentiments grow, SBI appears well-positioned for continued growth in the coming months.