As the stock market pares morning losses, the price of SBI shares rises to a new high. Purchase or dispose of?

As the stock market pares morning losses, the price of SBI shares rises to a new high. Purchase or dispose of?

After a sharply negative start, the price of SBI shares today recovered well and reached a new high of ₹806 per share on the NSE.

Market today: Experts claim that the high purchase of PSU equities and the big wager on Q4 results for 2024 are driving up the price of SBI shares.

Stock market today: Following a gapdown beginning on Thursday morning, the Indian stock market saw a significant bounce as a result of increased purchasing in the PSU sector. Bulls on Dalal Street also showed purchasing interest in State Bank of India (SBI) shares. The price of SBI shares begun the day down on the NSE at ₹770.65 per share, but the big Indian bank quickly recovered and reached an intraday high of ₹806 per share, setting a new all-time high for the SBI shares. Stock market analysts claim that SBI shares are increasing after robust PSU stock purchases following the market's first decline. According to them, the market anticipates that major banks like Axis Bank, SBI, Bank of Baroda, and ICICI Bank would profit from Kotak Mahindra Bank's business loss taking after the RBI's verdict. This is why they stated the RBI's new guidelines regarding the bank are also effective. Given the bank's anticipated solid Q4 performance in 2024, they projected more appreciation in SBI shares.

Why is today's price of SBI shares rising?

Avinash Gorakshkar, Head of Research at Profitmart Securities, highlighted the factors driving the current SBI share price, saying, "People are looking at PSU stocks while bottom fishing, which is why SBI shares are rising." The market is anticipating robust quarterly results from the PSU bank as the big Indian bank will profit after the Lok Sabha elections when infrastructure projects will be underway in full force. Because of the high interest rate environment, they anticipate that the banking giant will have solid Q4 profits in 2024.

According to Avinash Gorakshkar, there is some merit to the latest RBI decision about Kotak Mahindra Bank, which is anticipated to stimulate its rivals' credit card businesses across India. In tier-2 cities, SBI's credit card business is anticipated to gain, while private banks like Axis Bank, ICICI Bank, etc. are anticipated to profit from this RBI order in metro areas.

SBI's target share price

Anticipating more price growth for SBI shares, "SBI share price today gave a fresh at ₹800 apiece on chart patterns after breaching its hurdle of ₹780 per share level," said Sumeet Bagadia, Executive Director at Choice Broking. The recommendation now is for SBI shareholders to retain the scrip while raising their stop loss from ₹735 to ₹780 in order to reach the short-term goal of ₹850 per share."

Regarding the recommendation to new investors, Bagadia stated: "New investors should purchase SBI shares at the current price and stick to a buy-on-dips plan on each significant decline until the share price rises above ₹780." The stock might soon reach a price of ₹850 per share.