SBI Surges to Record High as Markets Rally on US Trade Deal Optimism

Why It Matters

The rally underscores how trade‑policy optimism can quickly translate into equity gains, especially for financials like SBI. It also signals heightened investor confidence that could sustain higher valuations across Indian markets.

Key Takeaways

• SBI shares jump 7.6% after strong Q3 earnings.
• India‑US trade talks lift market sentiment, reducing tariff barriers.
• Nifty Midcap and Smallcap indices outperform benchmarks, surge over 1.5%.
• All 12 NSE sectors close in green, media leads gains.
• Rupee weakens slightly amid higher precious metal imports.

Pulse Analysis

The recent convergence of India and the United States on an interim trade framework has injected fresh optimism into the Indian equity market. By proposing tariff reductions to 18%, the deal promises to lower import costs for a range of goods, from technology components to consumer products, thereby improving corporate margins. Market participants have interpreted the progress as a removal of a long‑standing overhang, prompting a wave of buying across sectors. This sentiment shift is reflected in the Sensex’s 0.58% gain and the Nifty’s 0.68% rise, marking one of the strongest single‑day moves of the year.

State Bank of India (SBI) emerged as the day's standout performer, climbing 7.63% after reporting third‑quarter earnings that surpassed analyst expectations and upgrading its full‑year loan‑growth guidance. The bank’s robust profit growth was driven by higher net interest margins and a surge in retail loan disbursements, signaling resilient demand for credit despite a slightly weaker rupee. SBI’s upgraded outlook not only boosted its own stock but also lifted the broader financial services index, reinforcing the view that Indian banks are well‑positioned to benefit from both domestic consumption and potential trade‑related credit expansion.

Beyond the financials, market breadth was exceptionally strong, with more than twice as many advancing stocks as decliners and all 12 NSE sectors posting gains; media led with a 4.4% jump. Mid‑cap and small‑cap indices outpaced the benchmarks, rising 1.58% and 2.64% respectively, suggesting that investors are also rotating into higher‑growth segments. Technical charts point to a bullish ‘spinning top’ formation and a key resistance zone around 25,970‑26,000. Should Nifty breach this level, analysts project a trajectory toward 26,400, while the rupee is expected to trade within a 90.25‑91.25 band amid modest import‑bill pressure.

SBI surges to record high as markets rally on US trade deal optimism

By Anupama Ghosh · Updated · February 09, 2026 at 07:31 PM

Markets closed sharply higher on Monday, with the benchmark Sensex gaining 485.35 points (0.58 %) to settle at 84,065.75, while the Nifty advanced 173.60 points (0.68 %) to end at 25,867.30, driven by optimism around an interim India‑US trade framework and standout earnings from State Bank of India.

State Bank of India emerged as the top gainer on the Nifty 50, surging 7.63 % to ₹1,147.80 after reporting better‑than‑expected third‑quarter earnings and upgrading its full‑year loan‑growth guidance. Shriram Finance followed with a gain of 6.03 % to ₹1,063.00, while Grasim Industries advanced 3.11 % to ₹2,925.00. Titan Company rose 3.04 % to ₹4,267.00, and Dr Reddy’s Laboratories climbed 2.80 % to ₹1,276.00.

Market sentiment received a significant boost from reports that India and the United States have moved closer to a trade agreement that includes tariff reductions to 18 %. “This development helped remove a key overhang that had been weighing on markets and triggered fresh buying across sectors,” said Ajit Mishra, SVP Research at Religare Broking.

The broader market significantly outperformed the benchmarks, with the Nifty Midcap 100 index surging 1.58 % to 60,441.15 and the Nifty Smallcap 100 index jumping 2.64 % to 17,385.90. Market breadth remained heavily positive, with 3,062 stocks advancing against 1,308 declines on the BSE. Notably, 148 stocks hit 52‑week highs while 100 touched 52‑week lows.

All 12 main NSE sectors ended in the green, with Nifty Media leading gains at 4.4 %, while IT stocks closed nearly flat at 0.02 %. “More than five stocks gained for every stock that fell, so today’s advance was ‘healthy’ in terms of breadth,” said Akshay Chinchalkar, Head of Markets Strategy at The Wealth Company. The Nifty Bank index gained 548.80 points (0.91 %) to close at 60,669.35, while the Nifty Financial Services index advanced 346.95 points (1.25 %) to 28,154.05.

On the downside, Max Healthcare Institute led the losers, declining 2.82 % to ₹1,010.50. NTPC fell 1.05 % to ₹361.20, ITC dropped 0.95 % to ₹322.70, ONGC declined 0.84 % to ₹266.70, and ICICI Bank slipped 0.78 % to ₹1,395.10.

The rupee traded marginally weaker by 6 paise at 90.70 against the dollar, feeling mild pressure as gold and silver prices surged, increasing the overall import bill. “The evolving India‑US trade dynamics are adding near‑term strain on the currency,” said Jateen Trivedi, VP Research Analyst at LKP Securities, who expects the rupee to trade in a range of 90.25‑91.25 in the near term.

“Today’s candle has formed a ‘spinning top’ candle with a slightly longer lower shadow, which, all else equal, is bullish,” said Chinchalkar. “If the market is able to hold this support area and go past 25,940, then immediate upside objectives will be 26,000 followed by the post‑trade‑deal high of 26,341.”

Looking ahead, technical analysts expect the positive momentum to continue. “The immediate resistance for Nifty is placed in the 25,970‑26,000 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 26,200, followed by 26,400 in the short term,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, recommending a buy‑on‑dips approach with support at 25,780‑25,750.