Who would have thought this? SBI overtakes TCS, Infosys in Mcap amid PSU banks’ turnaround: Gurmeet Chadha

Market veteran Gurmeet Chadha has said that five years ago, it was difficult to imagine that the State Bank of India (SBI) would overtake IT heavyweights such as Tata Consultancy Services (TCS) and Infosys in terms of market capitalization. While the Managing Partner and CIO of Complete Circle Consultants stopped short of writing down the tech stocks, he attributed the remarkable revival of PSU banks in recent years to improved risk management practices and accelerated digitalization.“Who would have thought five years ago that SBI would have a bigger market cap than TCS and Inf… Great turnaround in PSU banks as they become better risk managers and go digital. I wouldn’t write off Indian IT because… they have the ability to convert this into an opportunity…” Chadha said in a tweet on X on Thursday.

The comment comes in the wake of a massive sell-off in IT stocks. The Nifty IT index has fallen over 8% in the past week due to AI concerns.A new round of panic selling in technology stocks swept through D-Street on Thursday. The IT index fell over 4% to a four-month low, wiping out a staggering Rs 1.3 lakh crore in combined market value. Shares of Indian software exporters such as TCS, Infosys and Wipro fell more than 4%, hit by lingering fears of AI-induced disruption in the sector and exacerbated by stronger-than-expected US jobs data that dampened hopes of near-term rate cuts.

Nifty IT is the worst performing index, down 21% in the last twelve months.

With a market capitalization of Rs 10.91 lakh crore on BSE, SBI is the fourth most valuable company and only behind Reliance Industries (RIL, Rs 19.87 lakh crore), HDFC Bank (Rs 14.26 lakh crore) and Bharti Airtel (Rs 11.48 lakh crore).

Meanwhile, TCS’s mcap has fallen to Rs 10.52 lakh crore, while Infosys’s is Rs 5.97 lakh crore. The companies’ market capitalization has eroded after a 30% fall in TCS’s share price and a 25% decline in Infosys in the last twelve months.
Also read: Shriram Finance with Rs 2 lakh crore Mcap surpasses Nifty as lone multibagger. Can the party continue?

In contrast, the Nifty PSU Bank index has risen more than 50% in the last twelve months. Individually, Indian Bank is the biggest gainer at 63%, followed by a 62% return by SBI, which is rapidly closing the gap.

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