Public Sector Stocks Surge as Modi's Third Term Likely

Shares of public sector enterprises and state-owned banks surged over 12% on Monday as benchmark indices hit record highs. The rally followed exit polls predicting a third term for the Modi-led government. Key indices and individual stocks, including Bank of Baroda and SBI, reached new peaks.

Shares of public sector enterprises and state-owned banks saw a significant rise of over 12 per cent on Monday. The benchmark indices touched record highs following exit polls that forecasted a third term for the Narendra Modi-led government.

The Public Sector Units' (PSU) indices reached fresh intra-day peaks, moving in tandem with the main barometers hitting new records. In midday trading, the Nifty PSU Bank Index surged sharply by 644.15 points, or 8.72 per cent, reaching an all-time high of 8,030.15. Bank of Baroda's shares jumped 12.53 per cent, trading at Rs 298.10.

Central Bank of India climbed 12.53 per cent to Rs 72.55; State Bank of India (SBI) rose by 9.78 per cent to Rs 911.55; Canara Bank increased by 9.07 per cent to Rs 128.70; and Indian Overseas Bank soared 8.35 per cent to Rs 74.65 per share. SBI added Rs 69,388.85 crore to its market valuation, crossing the Rs 8 lakh crore mark for the first time.