State Bank of India Falls 1.16%: 4 Key Factors Driving the Weekly Move

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State Bank of India (SBI) closed the week ending 27 February 2026 at Rs.1,202.00, down 1.16% from the previous Friday’s close of Rs.1,216.15. This decline slightly underperformed the Sensex, which fell 0.96% over the same period. The week was marked by notable volatility, including new 52-week and all-time highs early in the week, followed by a pullback amid mixed market conditions and heavy options activity.

Key Events This Week

23 Feb: New 52-week high at Rs.1,229 and all-time high at Rs.1,226

24 Feb: Fresh 52-week and all-time highs at Rs.1,233.7 and Rs.1,234.8 amid sector outperformance

25 Feb: Sharp decline of 1.93% on heavy volume

27 Feb: Week closes at Rs.1,202.00, down 0.60% on the day

Week Open
Rs.1,216.15
Week Close
Rs.1,202.00
-1.16%
Week High
Rs.1,234.80
vs Sensex
-0.20%

23 February 2026: New 52-Week and All-Time Highs Signal Strength

On Monday, SBI’s stock price surged to a new 52-week high of Rs.1,229 and an all-time high of Rs.1,226, reflecting strong investor confidence. The stock gained 0.96% on the day, outperforming the Sensex’s 0.39% rise. This marked the continuation of a positive momentum that has seen the stock appreciate approximately 81% from its 52-week low of Rs.679.65.

Technical indicators supported this strength, with the stock trading above all key moving averages (5-day through 200-day), signalling a robust upward trend. The bank’s strong quarterly results, including a record profit after tax of Rs.21,028.15 crore and net interest income of Rs.45,190.36 crore, underpinned the rally. Additionally, a low gross non-performing asset ratio of 1.57% highlighted prudent asset quality management.

24 February 2026: Fresh Highs Amid Market Volatility

SBI extended its gains on Tuesday, hitting new 52-week and all-time highs at Rs.1,233.7 and Rs.1,234.8 respectively. Despite the broader market’s decline, with the Sensex falling 0.78%, SBI outperformed by rising 0.26%. This resilience amid a weakening market emphasised the stock’s relative strength within the public sector banking sector.

The stock’s trading range remained narrow, indicating steady buying interest without excessive volatility. Institutional investors, holding 37.53% of the stock, continued to demonstrate confidence. The bank’s commanding market capitalisation of Rs.11,33,335 crore and dominant sector share of 49.34% further reinforced its leadership position.

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25 February 2026: Sharp Decline on Heavy Volume

Wednesday saw a notable reversal as SBI’s stock price dropped 1.93% to Rs.1,200.20 on significantly higher volume of 2,502,176 shares. This decline contrasted with the Sensex’s modest 0.41% gain, indicating stock-specific selling pressure. The sharp fall followed two days of gains and may reflect profit-taking or reaction to broader market uncertainties.

Despite the dip, the stock remained above key moving averages, suggesting the correction was a temporary pullback rather than a trend reversal. The bank’s fundamentals remained intact, with strong quarterly earnings and low asset quality risks continuing to support the stock’s valuation.

26 February 2026: Partial Recovery Amid Market Stability

On Thursday, SBI rebounded modestly, gaining 0.75% to close at Rs.1,209.20. The Sensex also advanced 0.19%, reflecting a broadly stable market environment. The recovery was supported by lower volume compared to the previous day, indicating cautious buying interest.

The stock’s technical position remained strong, trading above all major moving averages. This resilience after a sharp decline suggests investor confidence in the bank’s long-term prospects despite short-term volatility.

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27 February 2026: Week Ends with Mild Decline Amid Market Weakness

Friday closed the week with SBI’s stock falling 0.60% to Rs.1,202.00, underperforming the Sensex’s sharper 1.16% decline. The broader market weakness was driven by a 425.93-point drop in the Sensex, reflecting investor caution ahead of the weekend. SBI’s volume rose to 1,772,436 shares, indicating active trading despite the decline.

The stock’s weekly performance, down 1.16%, slightly lagged the Sensex’s 0.96% fall. However, the bank’s strong fundamentals, including a gross NPA ratio of 1.57% and a net profit annual growth rate of 39.26%, continue to underpin its market standing. The premium valuation metrics, such as a price-to-book ratio of 2.1 and a PEG ratio of 15, suggest the market is pricing in sustained growth expectations.

Date Stock Price Day Change Sensex Day Change
2026-02-23 Rs.1,227.80 +0.96% 36,817.86 +0.39%
2026-02-24 Rs.1,223.85 -0.32% 36,530.09 -0.78%
2026-02-25 Rs.1,200.20 -1.93% 36,679.75 +0.41%
2026-02-26 Rs.1,209.20 +0.75% 36,748.49 +0.19%
2026-02-27 Rs.1,202.00 -0.60% 36,322.56 -1.16%

Key Takeaways

Positive Signals: SBI demonstrated strong resilience early in the week, hitting multiple new 52-week and all-time highs supported by robust quarterly earnings, low asset quality risks, and strong institutional ownership. The stock’s technical positioning above all major moving averages indicates sustained underlying strength.

Cautionary Signals: The sharp decline on 25 February on heavy volume and the subsequent mild pullback suggest profit-taking and increased volatility. Valuation metrics remain elevated, with a price-to-book ratio of 2.1 and a PEG ratio of 15, indicating the market is pricing in high growth expectations that may be challenging to sustain.

Market Context: SBI’s weekly underperformance relative to the Sensex reflects broader market weakness in the final two days of the week. Despite this, the bank’s dominant market position and strong fundamentals continue to provide a solid foundation for its stock price.

Conclusion

State Bank of India’s stock experienced a week of mixed performance, beginning with strong gains and record highs before retreating amid profit-taking and broader market volatility. The bank’s robust financial results, low non-performing assets, and commanding market share underpin its leadership in the public sector banking space. However, the premium valuation and recent price volatility warrant close monitoring. Overall, SBI remains a key market bellwether with a solid fundamental base, even as short-term price fluctuations reflect changing investor sentiment.

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