After exit polls indicated a clear majority for the BJP-led NDA, shares of PSU banks rallied up to 8% in Monday’s intraday trade on the BSE.
Shares of Bank of Baroda surged 8% to Rs 286, while Indian Overseas Bank saw a 6% rise in early trade. India’s largest PSU bank, SBI, gained 6.6%. Canara Bank and Indian Bank also jumped over 5%.
Bank of India, Union Bank of India, UCO Bank, Central Bank, Punjab & Sind Bank, PNB, and Bank of Maharashtra also saw gains of up to 4%.
Following the 7th phase of elections on Saturday, almost all exit poll surveys showed that the BJP is likely to win the Lok Sabha election on June 4th. The average of all major exit polls indicates that the BJP-led NDA will secure 374 seats in this election, while the INDIA alliance may get 137 seats and others may get 30 seats.
Today’s Chanakya survey suggests that the NDA could reach 400 seats, while India Today-Axis predicts 361-401 seats, and India TV-CNX forecasts 371-401 seats. News Nation and TV 9 Bharatvarsh-Polstrat, which give the least seats to the NDA, still predict 342 seats, well above the majority threshold of 272 seats.
Meanwhile, during Modi 2.0 (from June 2019 to May 2024), 10 out of 12 PSU bank stocks delivered multibagger returns of up to 473%.
According to data from Ace Equity, Indian Overseas Bank was the top performer among PSU banks, delivering 473% returns during the Modi 2.0 tenure. Bank of Maharashtra and UCO Bank followed, with returns of 325% and 226%, respectively. Additionally, the Central Bank of India, State Bank of India (SBI), Indian Bank, Canara Bank, Punjab & Sind Bank, Union Bank of India, and Bank of Baroda provided returns ranging from 106% to 150% over the last five years.
Last week, CLSA identified SBI, Canara Bank, and Bank of Baroda in its list of 54 Modi stocks.
“Modi stocks” are those of companies or sectors that have benefited directly from government policies and initiatives under Prime Minister Narendra Modi, making them attractive to investors looking to capitalize on government-driven growth.
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