PSU Stocks Skyrocket on Modi-Led NDA Victory Predictions!

PSU stocks, driven by optimism from exit polls favouring BJP, surged to record highs, with Nifty PSE index rising over 5%, led by HPCL, Power Grid, REC, and PFC.
"PSU Stocks Skyrocket on Modi-Led NDA Victory Predictions!"

PSU stocks, especially in the banking sector, surged significantly today due to investor optimism from exit polls predicting a BJP victory. This bullish sentiment propelled PSU banking stocks to new record highs, mirroring the broader market’s positive trend after the final election phase.

The PSU indices hit fresh highs alongside Nifty 50 and Sensex. The Nifty PSE index rose over five percent, driven by gains in HPCL, Power Grid, REC, and PFC, each increasing by more than six percent in early trading on June 3.

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The Nifty PSU Bank index outperformed private banks and the Bank Nifty, rising 5.3 percent to a record high of 7784 points. All 12 index constituents showed gains, with Bank of Baroda up 7 percent, Bank of India up 4.7 percent, and SBI up 5 percent.

Public sector banks have transformed remarkably, achieving a record profit of Rs. 1.4 lakh crore in FY’24, a stark contrast to the Rs. 85,390 crore loss in FY’18. This turnaround is due to treasury gains, reduced NPAs, and lower provisioning, strengthening their balance sheets.

The bullish trend also lifted benchmark indices, with Nifty 50 up 3.58 percent to a new high of 23,338 points, and Sensex up 3.75 percent to 76,738 points. Adani stocks also rallied, increasing their combined market cap by nearly Rs 1.4 lakh crore to Rs 19.24 lakh crore.

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