Nifty PSU Bank Gains for Second Consecutive Day, Surges 7% Led by SBI, Central Bank, PNB, and BOB
The Nifty PSU Bank index extended its rally for the second straight session on November 25, jumping 7% in two days amid an upbeat market mood. This surge has positioned it as the top-performing sectoral index among its peers. The rally followed a strong market sentiment after the BJP-led Mahayuti alliance’s decisive victory in Maharashtra’s state elections, which helped ease investor concerns about political uncertainties.
During the same period, the benchmark indices, Sensex and Nifty, posted gains of up to 5%, reflecting a broad-based rally.
On November 25, shares of key public sector banks like Central Bank of India, Indian Bank, UCO Bank, Punjab National Bank (PNB), Bank of Baroda (BOB), and State Bank of India (SBI) recorded gains between 3% and 7%.
Analysts from Emkay Research highlighted the positive implications of the election results for Maharashtra. “The Mahayuti win is expected to facilitate smoother coordination between the Centre and the state, potentially accelerating stalled infrastructure projects and resolving other pending issues,” they stated.
Elara Securities shared a similar sentiment, noting that the BJP’s rebound in state elections could help allay investor fears about the government’s focus on development and policy execution. They added, “Concerns about the slow pace of government spending, especially in capex, should subside. With the next major elections in 2025 (Delhi and Bihar) unlikely to create as much political distraction as Maharashtra and Haryana, we expect increased activity in government order awards. This should favor capital goods and PSU stocks.”
The election results appear to have not only bolstered market confidence but also provided a fresh tailwind for PSU stocks, with analysts expecting more traction in government spending and reforms in the months to come.
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