Result of Lok Sabha Elections leads to 19% decline in SBI share price during stock market crash

During Tuesday's trading session in the stock market crisis, numerous high-quality stocks experienced a significant drop in selling. Shares of the State Bank of India (SBI) are among them. Today, the price of SBI shares began the day with a notable decrease and reached a low of ₹731.95 per share on NSE, marking a loss of more than 19% during the day. While reaching this intraday low, SBI shares narrowly avoided hitting the lower circuit. Nonetheless, financial analysts think that SBI stocks are essential holdings, and the leading Indian bank has focused greatly on expanding its Capex in recent times. Investors were recommended to monitor SBI shares closely in anticipation of a significant recovery once the Indian stock market, rocked by unstable Lok Sabha Election 2024 outcomes, settles down after the ongoing sell-off.

The Head of Research at Profitmart Securities stated that SBI is among the PSU banks that have focused on strengthening its Capex expansion and reducing CASA. This assisted the government-owned bank in generating funds for its increasing need for the loan business and cutting down on its expenses for funding. Therefore, the PSU bank remains sturdy in terms of fundamentals and could see investors looking to buy at lower prices once the Indian stock market stabilizes.

According to Choice Broking's Executive Director Sumeet Bagadia, the SBI share price is firmly supported in the ₹730 to ₹720 range. It is recommended for individuals with SBI shares in their portfolio to hold onto the scrip and wait for the trend to reverse.