PSU bank stocks dominated the spotlight on Dalal Street, continuing their rally for the second consecutive day on November 25.
PSU bank stocks dominated the spotlight on Dalal Street as they continued their rally for the second day in a row on November 25, with gains of up to 7 percent in the bull market over the past two days. The rally follows strong market sentiment after the decisive victory of the BJP-led Mahayuti alliance in the Maharashtra state election, with investors shrugging off concerns about the NDA’s waning popularity.
In the span of two days, the Nifty PSU Bank Index emerged as the top performing sector, outperforming all other indices. Meanwhile, benchmark indices Sensex and Nifty gained up to 5 percent during the same timeframe.
Individually, shares of Central Bank of India, Indian Bank, UCO Bank, PNB, Bank of Baroda, SBI and others saw gains ranging from 3 to 7 percent on November 25.
Analysts at MK Research noted that Mahayutti’s victory is a positive development for Maharashtra, as a unified state and central government should speed up stalled infrastructure projects and resolve other pending issues.
Elara Securities also expressed optimism, suggesting that the BJP’s resurgence in state elections, following the setback in the Lok Sabha polls, will help ease investor concerns about the government’s policy and development agenda.
“Concerns of slower government spending, especially on capex, are behind us, as the next two elections in 2025—Delhi and Bihar—are not expected to dominate political attention like Maharashtra and Haryana,” the brokerage added. This should benefit capital goods and PSU stocks, as government contract awards are expected to accelerate.”
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