SBI Shares Skyrocket
Shares of the State Bank of India (SBI) experienced a remarkable surge, soaring nearly 10% during Monday’s trading session. This surge, which led to a landmark market capitalization of over ₹8 lakh crore for the first time, was a significant event in the market. It happened alongside record highs for benchmark indices, driven by the optimism from exit polls predicting a significant victory for the BJP-led National Democratic Alliance (NDA) in the Lok Sabha elections.
Exit Polls Spark Market Optimism
The release of exit polls on Saturday was a game-changer, forecasting a substantial majority for the NDA with a prediction of over 360 seats, well above the 272 needed for a majority. This projection was anticipated to inject a significant boost into the stock market, particularly public sector undertaking (PSU) stocks, in anticipation of the official election results scheduled for Tuesday, June 4.
Stellar Performance of SBI
SBI shares hit an intraday high of ₹912 on the NSE, marking a 9.8% increase from the previous day’s close. Year-to-date, the stock has surged by 40.7%. Over the past six months, SBI’s stock has delivered a 51.7% return; over the past 12 months, it has grown by 53.6%. This stellar performance can be attributed to a combination of factors, including the bank’s robust financial results, positive market sentiment, and the overall growth of the Indian economy.
With this milestone, SBI joins the elite group of Indian listed companies with a market cap exceeding ₹8 lakh crore, alongside Reliance Industries Ltd, Tata Consultancy Services Ltd, HDFC Bank, Bharti Airtel, Infosys, and ICICI Bank.
Stay Updated With News| Bharat Bulletin Online
Impressive Q4 Results
Last month, SBI shares climbed following impressive Q4 results. Net profit increased 24% year-on-year to ₹20,698 crore, and net interest income rose 3% to ₹41,656 crore. The bank’s asset quality also improved, with the gross NPA ratio decreasing by 54 basis points year-on-year to 2.24%. This performance not only outshined SBI’s previous records but also surpassed the performance of other major banks in India. Additionally, the board recommended a dividend of ₹13.7 per share.
The combination of favorable exit poll results and the robust financial performance of SBI has not only significantly boosted investor confidence but also reassured stakeholders about the stability and potential of the market.
