The rise in public sector banks has continued today after Friday. Nifty PSU Bank Index has jumped by 7% in these two days. Positive sentiment was seen in the market after the victory of the Bharatiya Janata Party-led Mahayuti alliance in the assembly elections in Maharashtra.

In these two days, Nifty PSU Bank is showing the highest outperformance compared to other indices. However, during this period, the benchmark index i.e. Nifty and Sensex have seen a gain of 5%.

 

Talking about the shares of government banks on Monday, Central Bank of India, Indian Bank, UCO Bank, PNB, Bank of Baroda, SBI have seen a gain of 3% to 7%. Analysts say that the victory of the Mahayuti alliance is a good thing for Maharashtra. This will make the central and state governments work in coordination and there will be a renewed emphasis on infrastructure development and will help in settling pending matters. Elara Securities also believes that after the victory in the Lok Sabha elections, BJP's victory in the Maharashtra assembly elections has relieved investors' concerns about the priority of policies and development agenda. This brokerage firm said that there will be no doubt about the slowdown in government expenditure, especially capex etc. Now assembly elections are to be held in Delhi and Bihar in 2025. This is expected to have a positive impact on the stocks of capital goods and government companies.