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

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.

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.