The BSE PSU Bank index slumped 5.65% on Monday as Indian equities faced heavy selling pressure following escalating geopolitical tensions involving Iran, Israel, and the United States over the weekend. The conflict drove crude oil prices higher, sparking concerns about potential pressure on the rupee and broader macroeconomic stability, which dragged all sectoral indices into negative territory.
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Other public sector lenders also came under heavy selling pressure. Stocks including Union Bank of India, Canara Bank, Punjab National Bank, and Bank of Baroda declined between 4% and 6% during the session, reflecting broad-based weakness across PSU banking counters.
SBI Technical Indicators
Technical data from Trendlyne shows that State Bank of India (SBI) has a 14-day Relative Strength Index (RSI) of 47.2. In technical analysis, an RSI reading below 30 is typically considered oversold, while a reading above 70 indicates overbought conditions. The current level points to broadly neutral momentum, though with a slightly negative bias.
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The stock is currently trading below five of its eight key simple moving averages (SMAs), suggesting near-term bearish sentiment among traders. However, it continues to remain above its longer-term 100-day, 150-day, and 200-day SMAs, indicating that the broader trend remains relatively supported.
Earlier this year, SBI had touched its 52-week high of Rs 1,234.70 on February 24, before entering the ongoing corrective phase.
SBI valuation and financial Performance
Despite the recent decline, SBI continues to trade at relatively reasonable valuations compared with the broader market. The bank currently has a price-to-earnings (P/E) ratio of 12.97 and a price-to-book (P/B) ratio of 2.14.
On the financial front, the lender reported a strong performance in the December 2025 quarter. Net profit rose to Rs 21,028 crore during the quarter, marking a 24.5% YoY growth and reflecting stable operational performance.
Also read: Oil rockets 30% to above $110/bbl, biggest jump since 2020 as Iran war rattles global supply
Institutional Holding Trends
Institutional shareholding data shows a mixed trend. Foreign Portfolio Investors (FPIs) raised their stake in SBI from 9.57% in the September 2025 quarter to 10.34% in the December 2025 quarter, signalling increased interest from overseas investors.
Meanwhile, mutual funds marginally trimmed their holdings, reducing their stake from 14.23% to 13.76% over the same period.
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