SBI Funds Management Shares Drop Over 3% To ₹591.30 As Profit-Booking Takes Toll

Shares of SBI Funds Management Limited slipped over 3% during late morning trade on Wednesday, July 22, 2026, as investors locked in profits following recent gains in financial and asset management stocks. By 11:41 AM IST, the stock was down ₹18.45, or 3.03%, trading at ₹591.30. The counter opened at its intraday high of ₹609.00 before experiencing sustained selling pressure that dragged prices down to a low of ₹585.30.

Profit-Booking Drives Pullback 

The decline was driven by routine profit-taking across asset management equities after a strong run-up following the company's recent stock market debut. Trading data indicated a volume-weighted average price (VWAP) of ₹594.37, showing active sell-side interest around the ₹591.45–₹591.65 range. Despite the short-term pullback, the underlying long-term outlook for India's largest asset manager remains supported by strong SIP inflows and steady assets under management (AUM) growth.

Brokerages Issue Bullish Ratings

Despite the morning price dip, major institutional research houses have issued positive initial coverage reports on the stock, expecting significant long-term upside:

Emkay Global Financial Services: Initiated coverage with a 'Buy' rating and set a target price of ₹750 for June 2027. Emkay highlighted three key growth drivers: State Bank of India's distribution network and brand strength, an ongoing shift toward higher-yielding equity and alternate investment assets, and operating leverage that is expected to drive a 17% EBITDA growth rate between FY26 and FY29.

Equirus Securities: Initiated coverage with a 'Long' rating and a target price of ₹675 for March 2027. Equirus pointed out the company's market leadership (15.1% mutual fund market share), sticky SIP book, asset-light business model, and high return on equity (RoE) exceeding 40%.

Swastika Investmart: Advised fresh investors to accumulate the stock on dips closer to the ₹585–₹600 zone while recommending short-term traders maintain a stop-loss around ₹585–₹590.

Technical Support

From a technical perspective, SBI Funds Management found immediate demand near the ₹585 support mark, helping the stock bounce back toward ₹591 levels. Immediate technical resistance sits near the previous closing price of ₹609.75. The pullback is being seen as a healthy consolidation after recent gains, with investors closely watching upcoming monthly fund flow data and operational updates.

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