SBI logs biggest single-day gain in 19 months on strong Q3 results

Synopsis

State Bank of India shares surged over 7%, marking its biggest single-day gain in 19 months following stronger-than-expected December quarter results. Analysts cited robust loan growth and outperformance against peers, leading to price target upgrades and bullish derivative positions, suggesting further upside potential.

Mumbai: State Bank of India surged more than 7% on Monday - its biggest single-day gain in 19 months - after the country's largest lender posted stronger-than-expected December quarter results, prompting a spate of price target upgrades by analysts and a rush of bullish positions in its stock futures. Analysts said the bank's relative outperformance versus private-sector peers and the build-up in derivatives positions point to further upside.

SBI shares rose 7.6% to ₹1,148, topping the Nifty gainers' list, while the benchmark index advanced 0.7%. Monday's advance is the highest in a day since June 2024.

"SBI reported strong loan book growth of 15.6%, outpacing HDFC Bank and ICICI Bank, and raised its FY26 credit growth guidance to 13-15% from 12-14%," said Yuvraj Choudhary, research analyst, Anand Rathi Institutional Equities. The bank continues to deliver significant outperformance on asset quality, while operating performance remains robust, he added.

Agencies

Shares rise over 7% after a robust Q3

Brokerages turned more upbeat on the stock following the results. Nuvama, which called SBI a top buy following its standout December-quarter performance among large lenders, raised its target price to ₹1,250 from ₹1,150.

SBI shares have climbed 39.4% over the past six months, compared with a 5.2% rise in the Nifty. Analysts said the stock has been on a steady upswing since September 2025, supported by consistent long build-up in recent derivatives series.

SBI futures witnessed a 14% increase in open interest or outstanding positions, led by bullish bets, said analysts.

"Even after the gap-up opening today, the stock saw fresh buying, which is a sign that the uptrend remains intact," said Ruchit Jain, head - Technical Research, Motilal Oswal Financial Services. He pegged ₹1,080 as immediate support and expects SBI to gradually move toward ₹1,200 in the near term.

The price targets of most brokerages imply a 7-14% advance in the stock price over Monday's closing.

"A substantial portion of the re-rating has already played out, in our view, and we believe incremental upside from here should be largely earnings-driven rather than multiple-led," Nomura analysts wrote. The brokerage retained its 'Buy' rating and raised its target price to ₹1,235.

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