The Nifty PSU Bank index surged up to 4.4% in intra-day trading, extending gains for the second consecutive session.
All PSU Bank constituents experienced gains in intra-day trading today, with Indian Overseas Bank, CBI, Union Bank of India, and Bank of Maharashtra rising over 5% each.
Meanwhile, Indian Bank, SBI, Bank of Baroda, Punjab and Sind Bank, and UCO Bank saw gains between 4-5% each.
Year-to-date, the index rose by 8.5% in April, 1 percent in March, 10.5 percent in February, and 9.8% in January.
PSU bank stocks witnessed a surge as investor sentiment improved following the confirmation of political stability through the 2024 Lok Sabha election results.
The Nifty PSU Bank index surged up to 4.4% in intra-day trading, extending gains for the second consecutive session. This follows a 2.5% jump on June 5, after confirmation that the BJP-led NDA would form the government at the Centre.
This follows a decline of over 15% on June 4, after the Modi-led NDA experienced a tighter-than-expected election race and failed to secure as many seats as predicted by exit polls.
All PSU Bank constituents experienced gains in intra-day trading today, with Indian Overseas Bank, CBI, Union Bank of India, and Bank of Maharashtra rising over 5% each. Meanwhile, Indian Bank, SBI, Bank of Baroda, Punjab and Sind Bank, and UCO Bank saw gains between 4-5% each.
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Additionally, Canara Bank, Bank of India, and Punjab National Bank also recorded gains of over 3% each. The index has surged by 72% over the past year and by 28% year-to-date in 2024.
The index recorded a 1% decline over the first three sessions of June following a 2.9% loss in May. However, prior to this, it had seen six consecutive months of gains. Year-to-date, the index rose by 8.5% in April, 1 percent in March, 10.5 percent in February, and 9.8% in January.
PSU bank stocks witnessed a surge as investor sentiment improved following the confirmation of political stability through the 2024 Lok Sabha election results. Leaders of the National Democratic Alliance (NDA) pledged their support to form a government for a third consecutive term.
In the last decade, public sector undertakings (PSUs) have notably benefited under the NDA government, a trend evidenced by the substantial gains of PSU stocks, with some yielding multi-bagger returns.
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