Investors lost ₹62,350 crore! SBI shares fell 6%; What is the reason for this tsunami in the market? (Image/AI)
SBI Market Crash: On Monday, there was huge turmoil in the Indian stock market, in which the investors of the largest public sector bank, State Bank of India (SBI) also got a big blow. The increasing geopolitical tension between Iran, Israel and America also hit the Indian market. SBI shares fell 5.60% to hit a low of ₹1079.40 on the National Stock Exchange (NSE). Due to this decline, there has been a huge decline of ₹62,352 crore in the market value of the bank, due to which its total market cap is now around ₹9.93 lakh crore.
As of 12:25 pm, SBI shares were trading at ₹1081, showing a huge fall of 5.44%. Due to this selling, the market cap of the bank has slipped below the magical figure of ₹ 10 lakh crore.
Main reasons for market decline
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There is an atmosphere of fear among investors due to increasing tension between Iran, Israel and America.
– Due to fear of war, Crude Oil has jumped 30% and crossed $110 per barrel. This is the biggest jump since 2020.
– Due to rising oil prices, there is concern that pressure on the Indian rupee and the country’s economy will increase.
Fall in PSU banking sector: Not only SBI, but shares of PNB, Canara Bank, Union Bank and Bank of Baroda also fell by 4% to 6%.
Technical Outlook of SBI
Sentiments for SBI currently appear ‘Bearish’ on technical charts:
– SBI’s 14-day Relative Strength Index (RSI) is at 47.2, indicating a neutral to slightly negative bias.
– The stock is trading below 5 of its 8 major moving averages. However, the saving grace is that it still remains above its long-term 100-day, 150-day and 200-day SMAs, raising hopes of a recovery in the future.
Let us tell you that on February 24 this year, SBI had touched its all-time high level of ₹ 1,234.70.
Should investors panic? (Valuation & Performance)
Despite the recent fall, experts believe SBI’s fundamentals are still strong:
– In the December 2025 quarter, the bank had registered a net profit of ₹ 21,028 crore, which is an impressive growth of 24.5% on an annual basis.
– SBI’s P/E ratio is 12.97 and P/B ratio is 2.14, which is considered quite reasonable compared to other stocks in the market.
– Foreign institutional investors (FPIs) have increased their stake in the bank from 9.57% to 10.34%, which is a positive sign for the long-term.
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