State Bank of India emerged as a defining story in Indian equities on Wednesday after the country’s largest public sector lender climbed to become the fourth-most valued company by market capitalisation, overtaking Tata Consultancy Services, a long-standing heavyweight of the market. The shift marked a symbolic moment for Dalal Street, underscoring the growing dominance of financials in the current market cycle and the sharp re-rating of state-owned banks.
Shares of SBI rose 3.4 percent during the session to close at a fresh all-time high of Rs 1,183. The rally pushed the bank’s market capitalisation to Rs 10.92 trillion, lifting it past TCS and placing it behind only Reliance Industries, HDFC Bank and ICICI Bank in the valuation rankings. The move capped a sustained run-up in the stock, driven by a combination of strong earnings visibility, improving asset quality and renewed investor confidence in public sector banks.
The rise in SBI’s valuation reflects a broader shift in market leadership. For years, technology majors, led by TCS, dominated the top ranks amid strong global demand and predictable earnings. That equation has begun to change as global growth uncertainties and margin pressures weigh on IT stocks, while domestic-facing sectors such as banking and financial services benefit from steady credit growth and healthier balance sheets. SBI, as the bellwether of the public sector banking space, has been a prime beneficiary of this rotation.
Investor enthusiasm around SBI has been fuelled by expectations of sustained loan growth, improving profitability and tighter control over stressed assets. The bank’s consistent reduction in non-performing loans over recent years has helped address long-standing concerns about balance sheet risk, while higher interest rates have supported net interest margins. Together, these factors have contributed to a sharp re-rating of the stock, which was once seen as a value play but is now increasingly viewed as a core holding for long-term investors.
The fact that a public sector bank has overtaken India’s most valuable IT company also highlights a change in how the market is pricing risk and growth. SBI’s rise signals confidence in the domestic economic cycle and in the government-led clean-up of the banking system, while TCS’s relative decline in ranking points to caution around export-oriented sectors exposed to global slowdowns and client spending cuts.
From a market perspective, SBI’s ascent carries wider implications. Its weight in benchmark indices means continued strength could lend support to broader market levels, particularly at a time when indices are consolidating near record highs. At the same time, the rapid rise in valuation raises questions about near-term sustainability, with some investors likely to watch for signs of earnings delivery keeping pace with expectations.
SBI’s move to become the fourth-most valued company is more than a stock-specific milestone. It reflects a deeper shift in market leadership towards banks and domestically driven businesses, reinforcing the narrative that India’s growth story is increasingly being played out through financials rather than technology.