SBI share price falls 2% on weak sentiment post electoral bond case hearing in Supreme Court

Stock market today: Shares of the State Bank of India (SBI) witnessed a strong sell-off as the constitution bench of the Supreme Court rejected the banker's plea to extend the deadline for disclosure of the details of electoral bonds. The apex court of India also asked one of the largest commercial bank of India to share the details of electoral bonds on Tuesday, which triggered the sell-off in SBI share price.

Electoral bond news

The five-judge constitution bench headed by the Chief Justice of India DY Chandrachud said that SBI's plea for more time is unwarranted as the provisions of the electoral bonds scheme mandate the disclosure of its details as and when it is sought by the court. The constitution bench of the Supreme Court directed the largest PSU bank of India to comply with the apex court's order by end of the business hours on Tuesday i.e. 12th March 2024.

SBI share price outlook

On why SBI share price today is under pressure, Saurabh Jain, Vice President — Research at SMC Global Securities said, “SBI share price is falling today due to the drop in sentiments regarding the banking stock. The reason for the drop in sentiments can be attributed to the Supreme Court's rejection of its plea for an extension of time for disclosure of electoral bonds details. Apart from this, sentiments in the Indian stock market are also weak. So, both these factors have pulled down SBI shares.”

On how this outcome in the Supreme Court on the electoral bonds would impact SBI share price movement, Saurabh Jain said, “The Supreme Court hearing on the electoral bonds case won't have much impact on the fundamentals of the PSU bank. This dip in SBI share price should be seen as an opportunity by medium to long-term investors.”

SBI share price target

Expecting a bounce back in SBI share price, Sumeet Bagadia, Executive Director at Choice Broking said, “One can buy and hold the stock at current levels and keep adding on every big dip till it is sustaining above ₹740 apiece level. SBI share price may bounce back strongly and go up to ₹810 and ₹850 levels in the short to medium term. However, one must maintain stop loss at ₹740 while taking or holding any position in SBI shares.”

Last month, the Supreme Court outlawed the scheme, under which individuals and companies could anonymously buy electoral bonds, saying it "infringes upon the right of information of the voter".

Electoral bonds have been a key method of political funding, allowing donors to give anonymously through certificates purchased from the State Bank of India (SBI).

(With inputs from AFP)

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