SBI Share Price Soars to 52-Week High on Budget Optimism and Earnings Strength
The share price of State Bank of India (SBI) witnessed a significant surge of approximately 4% during intraday trading on the Bombay Stock Exchange (BSE) on Wednesday, February 11, reaching a new 52-week high of ₹1,187.70. This rally reflects sustained buying interest in the PSU banking stock, fueled by positive developments from the Union Budget 2026 and the bank's impressive December quarter performance.
Budget-Driven Momentum and Market Position
In her Budget speech on February 1, Finance Minister Nirmala Sitharaman announced a proposed increase in government capital expenditure (capex) to ₹12.2 lakh crore for FY27, up from ₹11.2 lakh crore in FY26. This move is seen as a direct boon for PSU banks like SBI, which often finance large-scale government projects. The heightened capex target is expected to stimulate credit demand, potentially leading to more big-ticket loans and robust credit growth.
As India's largest bank by assets with an extensive market presence, SBI is strategically positioned to capitalize on this government spending push. On a monthly basis, the SBI share price has climbed over 10% in February so far, extending its winning streak to seven consecutive sessions. Over the past year, the stock has skyrocketed more than 60%, underscoring its strong performance in the market.
Robust Q3FY26 Earnings Fuel Investor Confidence
SBI reported better-than-expected earnings for the December quarter of the current financial year (Q3FY26), further bolstering investor optimism. The bank's standalone profit rose by 24.5% year-on-year to ₹21,028.15 crore, compared to ₹16,891.44 crore in the same quarter last year, marking its highest-ever quarterly net profit.
Brokerage firm Motilal Oswal Financial Services highlighted that SBI's Q3 results demonstrated strength across all metrics. The firm subsequently increased its earnings estimates by 3% for FY27E and 4.3% for FY28E, projecting a return on assets (RoA) of 1.1% and return on equity (RoE) of 15.9% for FY27E.
Expert Insights and Investment Considerations
Market experts largely maintain a positive outlook on SBI shares for the long term. Motilal Oswal has retained a buy recommendation with a revised target price of ₹1,300, based on 1.4 times FY28E adjusted book value plus ₹354 for subsidiaries. However, the rapid ascent in stock price suggests potential for profit booking in the near term.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that SBI appears overextended, trading significantly above its key moving averages with momentum oscillators in overbought territory. He advised traders to trail stop losses at ₹1,060 on a closing basis to safeguard gains, cautioning that while the broader trend remains strong, consolidation or profit booking could occur at current levels.
Long-term investors may consider buying the stock on dips, as the combination of government capex initiatives and solid financial performance continues to support SBI's growth trajectory. This analysis serves educational purposes, and investors are encouraged to consult certified experts before making investment decisions, given the dynamic nature of market conditions.
