Shares of State Bank of India (SBI) are down by over 20% from their peak, and the slide accelerated following the announcement of its Q4 earnings where the PSU bank reported margin contraction and a sequential drop in net interest income (NII). While the stock appears weak on charts, brokerages remain confident about its fundamental credentials, recommending a buy.
SBI shares have lost momentum since hitting their 52-week high of Rs 1,235 on the NSE. The stock rallied 60% between May and February, outperforming the sector and most of its PSU bank peers. But its underperformance is not an isolated event as domestic markets have had a rough ride in 2026, so far. While Nifty and Bank Nifty are down 10% year-to-date, the sectoral benchmark Nifty PSU bank has declined over 5% in this period.
