Indian benchmark equity indices opened on a positive note on Monday, breaking a six-week losing streak. The BSE Sensex climbed 110.14 points (0.14%) to reach 79,968.14, while the Nifty50 gained 46.19 points (0.19%) to touch 24,409.19.

SBI Leads the Charge

State Bank of India emerged as the top gainer among Sensex stocks, with its shares rising 1.5%. The surge came on the heels of the bank's impressive financial performance for the June quarter, reporting a 12% year-on-year increase in standalone net profit.

Market Movers

Other notable gainers in the session included:

• NTPC
• Trent
• HDFC Bank
• Tata Motors

However, not all stocks participated in the rally. Asian Paints, ICICI Bank, Bajaj Finserv, Axis Bank, and Hindustan Unilever (HUL) traded lower, indicating a mixed sentiment in the market.

Brokerage Optimism on SBI

Following State Bank of India's robust quarterly results, several brokerage firms have expressed confidence in the bank's prospects. Some have raised their target price for SBI shares to as high as Rs 955.00, reflecting positive expectations for the bank's future performance.

Market Sentiment

Despite the positive opening, overall market sentiment remains subdued. Investors continue to exercise caution due to ongoing uncertainty surrounding potential U.S. tariffs on Indian goods. This geopolitical factor is contributing to a cautious approach in the market.

The day's trading session highlights the resilience of public sector banks, particularly State Bank of India, in the face of broader market challenges. As global economic factors continue to influence investor sentiment, market participants will be closely watching for further developments in trade relations and corporate performances.

State Bank of India (SBI), India's largest public sector bank, has reported a robust 15% year-on-year increase in net profit, reaching ₹19,160 crore for the first quarter. This performance exceeded the previous year's figure, demonstrating the bank's resilience and strong financial position.

Key Financial Highlights

• Loan Growth Guidance: Reaffirmed at 12% for FY26
• Deposit Growth Guidance: Maintained at 10% for FY26

Net Interest Margin Trajectory

Chairman CS Setty indicated that Net Interest Margins (NIM) will follow a U-shaped trajectory:

• Moderating in Q1 and Q2
• Expected to recover to Q4 FY25 levels by year-end

Profitability Targets

The bank aims to maintain:

• Return on Assets (ROA) above 1%
• Return on Equity (ROE) above 15%

Loan Portfolio Performance

• Retail and SME portfolios: Grew in double digits
• Corporate loan growth: Slowed due to market instrument shifts and prepayments

Capital Raising and Strategic Moves

• SBI completed a ₹25,000 crore capital raise to support future lending
• The bank expects limited impact from U.S. tariffs given low exposure to export-dependent sectors

Outlook

While SBI's year-on-year performance shows strength with double-digit profit growth, the bank faces challenges in maintaining its Net Interest Margin in the short term. The successful capital raising and strategic focus on retail and SME sectors demonstrate SBI's proactive approach to strengthening its financial position and supporting future growth.

State Bank of India's results underscore its continued importance in the Indian banking sector, with a clear strategy to navigate the dynamic economic environment and maintain its growth trajectory.