Shares of the State Bank of India (SBI) experienced a significant downturn today after the Supreme Court’s constitution bench dismissed the bank’s request for an extension to disclose the details of electoral bonds. The apex court directed SBI to share the electoral bonds details by the end of business hours on Tuesday, March 12, 2024.
The five-judge constitution bench, led by Chief Justice of India DY Chandrachud, deemed SBI’s plea for an extension unwarranted, citing provisions of the electoral bonds scheme that mandate disclosure upon court request.
Saurabh Jain, Vice President of Research at SMC Global Securities, explained, “SBI’s shares are declining today due to negative sentiment surrounding the banking stock. The rejection of its plea by the Supreme Court, combined with overall weakness in the Indian stock market, has contributed to the decline.”
Regarding the impact of the Supreme Court’s decision on SBI’s share price movement, Jain stated, “The outcome of the electoral bonds case in the Supreme Court is unlikely to significantly affect the fundamentals of the PSU bank. Investors with a medium to long-term perspective may view this dip in SBI’s share price as an opportunity.”
