Jefferies called SBI its "top pick from the sector" and believes that CET-1 CAR at 13 per cent, healthy ROEs & scope to monetise stakes in businesses can support growth.
Among other companies, earnings from State Bank of India, NSE, Bajaj Finserv, Solar Industries India, Bajaj Holdings and Lloyds Metals will also remain in focus as investors track their Q2 FY27
Overall, analysts see a 11-13 per cent year-on-year (YoY) growth in SBI's Q2 NII, while analysts diverge on the profit trajectory.
Analysts believe that its franchise strength, wide distribution network and expansion in alternatives are likely to help SBI Funds Management capitalise on industry tailwinds.
At 09:49 AM on Monday, the Nifty PSU Bank index was top gainer among sectoral indices, up 2.6 per cent, as compared to 0.02 per cent decline in the Nifty 50.
RailTel Corporation of India secured a repeat order worth ₹197.18 crore for telecom service for SBI branches across India for the next five years.
Analysts at Kotak Institutional Equities believe the rate hike cycle poses limited risk for banks, given healthy balance sheets, tighter underwriting standards and stronger borrower fundamentals.
At 10:31 AM on Wednesday, the Nifty Bank, Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services traded up to 1% higher; while, the Nifty Auto and Nifty Realty remained in negative zone.
At 10:23 AM on Monday, the Nifty PSU Bank index was top gainer among sectoral indices, up 2 per cent, as compared to 0.44 per cent rise in the Nifty 50.
PSU Bank stocks slide: Bank of India, Bank of Maharashtra, Union Bank of India, Canara Bank, Punjab National Bank and Bank of Baroda declined 2-4% in Monday's trading session.
The 200-DMA is a technical indicator widely used to determine the long-term trends of the underlying index or stock. Indices or stocks trading below the 200-DMA are considered to be in a downtrend.
The gains in bank stocks come against a backdrop of a sharp surge in foreign-currency inflows, which has boosted liquidity across the banking system.
Among large private banks, Goldman Sachs sees the strongest upside in ICICI Bank; Bernstein, meanwhile, rates ICICI Bank, Axis Bank, HDFC Bank and IndusInd Bank as 'Outperform.
At 11:31 AM on Wednesday, the Nifty PSU Bank index was the top gainer among sectoral indices up 1.6 per cent, as compared to a 0.74 per cent decline in the Nifty 50.
SBI Share: Analysts largely maintained bullish views on SBI shares following the Q1 results, foreseeing a 22 per cent upside from last closing price.
Analysts said that comments on NIM recovery, the impact of ECL transition, and mobilisation of FCNR deposits for the quarter are the key monitorables that investors must track in SBI's Q1 results.
Broad-based buying across PSU bank stocks lifted the Nifty PSU Bank index, with analysts attributing the rally to improving fundamentals, attractive valuations, and expectations of healthy Q1 earnings
SBI Funds Management IPO GMP today is ₹90, signalling a listing gain of 15.68 per cent. The highest GMP in the unofficial market stood at ₹140 at one point.
Q1-FY27 numbers, according to Anirudh Garg, fund manager & partner, INVasset PMS, are likely to show soft margins across the board, but private banks will be the first to show the NIM trough is over
PSU Bank index logged its sharpest intra-day gain in three months on Friday. Analysts expect PSU Banks to outdo private peers on earnings front on improvement in asset quality and high credit growth.