PSU Stocks Surge 12% After Modi Victory Polls

New Delhi, Jun 3 (PTI) Shares of public sector enterprises as well as state-owned banks surged over 12 per cent on Monday as benchmark indices touched record highs a day after exit polls predicted a third term for the Prime Minister Narendra Modi-led government.

Public sector units' indices jumped to fresh peaks during intra-day, in tandem with the benchmark barometers that hit new records.

In the mid-session trade, the Nifty PSU Bank Index witnessed a steep surge climbing 644.15 points or 8.72 per cent to reach an all-time high of 8,030.15, with the scrip of Bank of Baroda rising 12.53 per cent to trade at Rs 298.10.

Central Bank of India rallied 12.53 per cent to Rs 72.55, State Bank of India went up 9.78 per cent to Rs 911.55, Canara Bank rose 9.07 per cent to Rs 128.70, and Indian Overseas Bank jumped 8.35 per cent to Rs 74.65 apiece on the NSE.

At one point, shares of Bank of Baroda and SBI hit their 52-week highs of Rs 299.70, and Rs 912, respectively. Canara Bank too hit its 52-week on the bourse.

SBI added Rs 69,388.85 crore, taking its market valuation to Rs 8 lakh crore for the first time, becoming the first public sector bank to achieve this milestone.

Also, Nifty CPSE indices climbed more than 7 per cent to hit a record high of 7,075 points, with Power Grid rallying 10.31 per cent, NTPC 8.76 per cent, Oil & Natural Gas Corp 7.23 per cent, and Bharat Electronics Ltd (BEL) 7.11 per cent.

Meanwhile, Power Grid, NTPC and BEL hit their 52-week highs at Rs 348.70, Rs 391.65 and Rs 323 apiece, respectively, on the NSE.

The broader NSE Nifty jumped 709.05 points or 3.15 per cent to 23,239.75. In the intra-day trade, the 50-share index climbed 3.58 per cent to hit its lifetime peak of 23,338.70.

Also, the Nifty Bank index soared nearly 4 per cent to hit a record high at 50,889.85.

On Saturday, most of the exit polls predicted that PM Modi will retain power for a third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha elections.

The finance ministry on Saturday said the country's Goods and Services Tax (GST) collections grew 10 per cent to Rs 1.73 lakh crore in May driven by an increase in domestic transactions, indicating a sustained economic momentum.

The government data released on Friday showed India's economy grew by 8.2 per cent in the fiscal year that ended in March, cementing the country's position as the fastest-growing major economy in the world.

The central government's fiscal deficit during 2023-24 at 5.6 per cent of the GDP was better than previous estimates of 5.8 per cent on account of higher revenue realisation and lower expenditure, according to official data released on Friday.