Business | Stock Markets | Investing | Economy | Tech | Crypto | India | World | News at Moneynomical

State Bank of India cracks the ₹8 lakh crore market cap club!


State Bank of India (SBI), India’s largest lender, has achieved a monumental feat by joining the elite group of companies with a market capitalization exceeding ₹8 lakh crore (US$100 billion). This significant milestone reflects the bank’s robust financial performance and the surging investor confidence in the Indian economy.

SBI’s stock price has skyrocketed over 40% in 2024, reaching a new all-time high of ₹900.15 on the BSE on June 3rd. This jump, the biggest since September 2021, propelled the bank’s market cap past the coveted ₹8 lakh crore mark.

SBI now proudly stands shoulder-to-shoulder with other Indian giants like Reliance Industries, TCS, HDFC Bank, Bharti Airtel, Infosys, and ICICI Bank in the exclusive ₹8 lakh crore market cap club.

The recent surge in SBI shares mirrors the broader market rally witnessed in PSU stocks. This upswing can be attributed to the positive exit poll results released on June 1st, which predicted a landslide victory for the BJP-led NDA government in the upcoming elections.  These projections, indicating a potential win of over 350 Lok Sabha seats, have instilled optimism in investors, particularly for sectors that could benefit from government growth initiatives, like public sector units and infrastructure projects.

Market analysts remain bullish on SBI and other domestic sectors. Analysts believe a sustained focus on capital expenditure and fiscal consolidation will drive outperformance in infrastructure and manufacturing. BoB Cap’s note on SBI echoes this sentiment, highlighting the bank’s potential for “further potential for improved performance” due to its “healthy business growth” and “stable margins.”

On Monday, SBI’s market cap surged past ₹8 lakh crore as its stock price hit a fresh 52-week high of ₹912 on the NSE and ₹912.10 on BSE. This nearly 10% intraday gain was fueled by the positive exit poll predictions indicating a strong majority for the current government.

SBI’s impressive market cap achievement is a testament to its financial health and the trust investors have placed in the bank’s future. As the bank navigates favourable market conditions and leverages strategic government initiatives, it remains a central pillar of India’s financial landscape. Investors and analysts will be keeping a close eye on how SBI capitalizes on this momentum to propel further growth in the coming years.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More