State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become India’s fourth-largest listed company by market capitalisation, supported by a sharp post-results rally and improving sentiment around public sector banks.SBI’s market capitalisation now stands at nearly Rs 10.92 lakh crore, ahead of TCS at about Rs 10.52 lakh crore, according to an ET report. The country’s top three listed companies remain Reliance Industries at Rs 19.87 lakh crore, HDFC Bank at Rs 14.16 lakh crore and Bharti Airtel at Rs 11.47 lakh crore, based on Wednesday’s closing data.The reshuffle comes after SBI shares rallied about 11% over the last three trading sessions following strong third-quarter earnings. In contrast, TCS shares have declined nearly 4% over the past five days amid broader concerns around artificial intelligence-led disruption in the global IT services sector.Weak sentiment around technology stocks has dragged Indian IT counters lower over the past week, indirectly aiding SBI’s rise in market capitalisation rankings. The divergence reflects a broader market rotation, with banks benefiting from strong credit growth and improving balance sheets, while IT stocks face near-term uncertainty linked to AI-driven pricing pressure and global technology spending trends.SBI reported a net profit of Rs 21,030 crore for the third quarter, marking an 18% beat over Street estimates. The performance was supported by higher fee income and lower-than-expected provisions. Net interest income rose 9% year-on-year to Rs 45,190 crore, while margins remained stable at 2.99%, with domestic margins expanding to 3.12%.Management indicated confidence in sustaining margins above 3% in FY26 and over the long term.The bank’s loan book expanded 15.6% year-on-year, outpacing deposit growth of 9%, reflecting healthy credit demand. Asset quality also improved, with slippages moderating and credit costs remaining contained at 29 basis points.Brokerages have turned constructive on SBI following the third-quarter results.Jefferies set a price target of Rs 1,300, citing strong return on equity prospects and value from subsidiaries. The brokerage has revised its earnings estimates upward and expects double-digit core profit growth over the next three years, valuing the bank at 1.5 times its FY28 adjusted book value.Motilal Oswal has also raised earnings forecasts and expects healthy return ratios, factoring in around Rs 354 per share from subsidiaries.Nomura raised its target price to Rs 1,235, reflecting an improved return on equity outlook, while JP Morgan maintained an overweight rating with a target of Rs 1,250, stating that SBI continues to deliver above-system growth with best-in-class asset quality among large public sector lenders.Morgan Stanley maintained an equal weight rating, noting valuations are approaching fair levels unless revenue growth surprises positively. BofA Securities retained a neutral stance with a target of Rs 1,100, stating that at current valuation multiples, the risk-reward profile appears broadly balanced.
