The banking stocks—from the private to the public sector—surged to hit a fresh record high on Monday on euphoria about policy continuity as exit polls predicted a big win for the incumbent government.
The NSE Nifty Bank rose as much as 4.30% to an all-time high of 51,133, while the NSE Nifty PSU Bank advanced 9.03% to a fresh high of 8,053.3. The benchmark stock indices Nifty and Sensex also scaled new highs of 23,338.7 and 76,738.8, respectively, during the session.
On Saturday, as the Lok Sabha elections concluded, exit polls indicated a clear victory for the National Democratic Alliance. Additionally, strong macroeconomic data reinforced bullish market bets.
India is witnessing its own mini-Goldilocks moment with excellent macros, solid corporate earnings, a focus on manufacturing, capex, and infrastructure creation, according to Motilal Oswal Financial Services Ltd. "Industrials, consumer discretionary, real estate, and PSU banks are key preferred investment themes."
State Bank of India, India's largest public lender, crossed Rs 8 lakh crore in market capitalisation on Monday. During the session, the bank's shares touched a new record high of Rs 898 per share.
Shares of all the PSU banks surged on Monday, led by Bank of Baroda and Central Bank of India, which rose 10% each, followed by State Bank of India and Canara Bank, which gained over 9% during the session.
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