The Index's Biggest Loser, Two Sessions Running | SBI

SBIN

SBI was the top loser on the Nifty in Tuesday's early trade, with PSU banks leading sectoral losses for the second consecutive session. On Monday, SBI had declined 2.19 per cent to emerge as the single biggest loser in the Sensex pack, even as the broader market held above 24,200. The persistent selling in SBI and the broader PSU bank pack is a function of three converging pressures. First, the RBI's neutral policy stance and hold at 5.25 per cent removes the near-term rate cut catalyst that had been driving expectations of NIM expansion for public sector lenders. Second, FII selling — which has been concentrated in PSU banks and NBFCs this year — continues to create a supply overhang in the sector. Third, the government's planned disinvestment calendar for the second half of FY27, which includes several PSU entities, historically creates sector-wide uncertainty around supply of government-owned shares. SBI's fundamentals, taken in isolation, tell a different story. Q4 FY26 net profit grew 18 per cent year on year. Gross NPA has fallen to near multi-year lows. The bank's loan book grew over 14 per cent year on year, with CASA deposits holding firm above 41 per cent. The stock's 52-week range of Rs 656.50 to Rs 912 means the current level of approximately Rs 769 sits uncomfortably in the middle — neither a clear buy at the low nor a momentum play near the high. The divergence between SBI's improving fundamentals and its persistent underperformance this week is the kind of dislocation that long-term investors watch closely — even if the near-term news flow continues to favour selling.