SBI, Bank of India among other PSU bank shares rise up to 8% amid strong buying; PSU Bank index gain up to 3%

Shares PSU Bank rise in trade. 

• SBI shares jumped 8 percent to a 52-week high after record quarterly profits.
• Nifty PSU Bank index up 3.34%, all 12 stocks closed in green.
• Analysts suggest buy-on-dips if Bank Nifty stays above 60,000.

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State Bank of India (SBI) and Bank of India were among public sector bank stocks that witnessed strong buying on Monday, pushing the Nifty PSU Bank index higher.

Shares of SBI emerged as the top gainer on the index, rising nearly 8 percent to touch a fresh 52-week high of Rs 1,150 apiece. The rally followed better-than-expected December quarter results announced by the lender, after which several brokerages raised their target prices on the stock.

The company reported an all-time high profit of Rs 21,028 crore in December quarter FY26 on a standalone basis. On a consolidated basis, the state-owned lender reported a 13.06 per cent increase in profit at Rs 21,317 crore, as per a regulatory filing.

The bank’s net interest income grew 9 percent year-on-year to Rs 45,190 crore during the quarter under review, compared with Rs 41,445 crore in the corresponding period last year.

Other PSU bank stocks also gained on the back of the positive sentiment. Indian Bank and Bank of India rose 3.78 percent and 2.71 percent, respectively.

The Nifty PSU Bank index ended 3.34 percent higher, with all its 12 constituents closing in the green. The Nifty Bank index also settled nearly 1 percent higher.

The Bank Nifty also witnessed a gap-up opening and convincingly surpassed its previous record high of 60,437, outperforming the benchmark Nifty 50. The banking index surged 549 points (0.91 percent) to 60,669 and formed a bearish candle on the daily charts near the upper Bollinger Bands. This marked the second bullish gap created by the index in the current month after February 3, while sustaining above the falling support trendline.

All key moving averages trended upward, with a bullish bias in momentum indicators. The RSI maintained a bullish crossover and held above the 60 zone, while the MACD trended higher with further strength in the histogram.

According to Vatsal Bhuva, Technical Analyst at LKP Securities, the overall bullish chart structure remains intact, with the base gradually shifting higher, suggesting accumulation at elevated levels.

"A buy-on-dips strategy can be adopted as long as the index sustains above the crucial 60,000 mark. On the levels front, immediate support is placed near 60,000, while resistance is seen around the 60,900 zone," he said.

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