State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become India’s fourth-largest listed company by market capitalisation, helped by a sharp post-earnings rally and improving sentiment towards public sector banks.According to the ET report, the market capitalization of SBI is now around Rs 10.92 lakh crore, which is more than that of TCS by around Rs 10.52 lakh crore. Based on Wednesday’s closing data, the top three listed companies of the country remain Reliance Industries at Rs 19.87 lakh crore, HDFC Bank at Rs 14.16 lakh crore and Bharti Airtel at Rs 11.47 lakh crore.The reshuffle comes after SBI shares rose nearly 11% in the last three trading sessions following strong third-quarter earnings. In contrast, TCS shares have fallen nearly 4% in the last five days amid widespread concerns over disruption caused by artificial intelligence in the global IT services sector.Weak sentiment around technology stocks has dragged down Indian IT counters last week, indirectly helping SBI rise in the market capitalization rankings. The divergence reflects a broader market rotation, with banks benefiting from stronger credit growth and balance sheet improvement, while IT stocks face AI-driven pricing pressure and near-term uncertainty linked to global technology spending trends.SBI reported third-quarter net profit of Rs 21,030 crore, 18% above Street estimates. The performance was supported by higher fee income and lower than expected provisions. Net interest income grew 9% year-on-year to Rs 45,190 crore, while margins remained stable at 2.99%, with domestic margins expanding to 3.12%.The management expressed confidence of maintaining margins above 3% in FY26 and in the longer term.The bank’s loan book expanded 15.6% year-on-year, higher than deposit growth of 9%, reflecting healthy loan demand. Asset quality also improved, slippages reduced and credit costs remained contained at 29 basis points.After the third quarter results, brokerage companies are adopting a positive attitude towards SBI.Jefferies has set a price target of Rs 1,300, citing strong return on equity prospects and value of subsidiaries. The brokerage has revised down its earnings estimates and expects double-digit core profit growth over the next three years, taking the bank’s valuation to 1.5 times its FY2028 adjusted book value.Motilal Oswal has also raised earnings estimates and expects healthy return ratios from subsidiaries at around Rs 354 per share.Nomura raised its target price to Rs 1,235, reflecting an improved return on equity outlook, while JP Morgan maintained Overweight rating with a target of Rs 1,250, saying SBI continues to provide systemic upside with best-in-class asset quality among large public sector lenders.Morgan Stanley maintained an Equal Weight rating, noting that valuations are approaching reasonable levels unless revenue growth surprises positively. BofA Securities maintains neutral stance with a target of Rs 1,100, saying that at current valuation multiples, the risk-reward profile appears broadly balanced.