State Bank of India (SBI) share price rose about 4% in intraday trade on the BSE to hit its 52-week high of ₹1,187.70 on the BSE on Wednesday, February 11. The PSU banking stock has been witnessing healthy buying interest recently after the Union Budget 2026 underlined the government’s intent to increase capital expenditure (capex). Moreover, the lender’s strong December quarter (Q3FY26) results have also contributed to the optimism about the stock.
On a monthly scale, the SBI share price is up over 10% in February so far, looking set to extend its winning streak for the seventh consecutive session. SBI shares have surged over 60% over the last year.
The budget push
Finance Minister (FM) Nirmala Sitharaman, in her Budget speech on February 1, proposed to increase the government capex to ₹12.2 lakh crore for FY27 from ₹11.2 lakh crore in FY26.
PSU banks are seen as direct beneficiaries of government spending because they finance large government-linked projects.
An increased government capex target may fuel credit demand and likely translate into more big-ticket loans and stronger credit growth. SBI, India’s largest bank by assets and with a wide market presence, is well positioned to benefit from this.
The earnings impact
SBI reported better-than-expected earnings for the December quarter of the current financial year (Q3FY26).
The bank reported a 24.5% year-on-year (YoY) rise in standalone profit to ₹21,028.15 crore from ₹16,891.44 crore in the same quarter last year. It was SBI’s highest-ever quarterly net profit.
Brokerage firm Motilal Oswal Financial Services highlighted that SBI’s Q3 results remained strong across all fronts.
The brokerage firm increased its earnings estimates by 3% and 4.3% for FY27E and FY28E, respectively, and estimates FY27E RoA and RoE at 1.1% and 15.9%, respectively.
Is it time to buy SBI shares?
Experts appear largely positive about the stock for the long term.
Motilal Oswal retained a buy call on the stock with a revised target price of ₹1,300, factoring in 1.4 times FY28E ABV + ₹354 for subsidiaries.
However, the steep rise in stock price indicates there could be some profit booking. Experts say long-term investors may consider buying the stock on dips.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, highlighted that SBI appears overextended, as the stock is trading significantly above its key moving averages. Momentum oscillators are also in overbought territory, indicating stretched conditions in the near term.
“Given the sharp run-up, traders are advised to trail stop loss at ₹1,060 on a closing basis to protect gains. While the broader trend remains strong, some consolidation or profit booking cannot be ruled out at current levels,” said Patel.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
