The Nifty Bank crossed the 50,000 mark for the first time on Monday after exit polls indicated Modi’s return for a third term.
The Nifty Bank rose as much as 4.1% in Monday’s trade to reach 50,990 led by strong performances from Bank of Baroda, SBI, Axis Bank, and IndusInd Bank.
Shares of Bank of Baroda surged 9% to Rs 290, while India’s largest PSU bank, SBI, gained 7%. Axis Bank, IndusInd Bank, and PNB also jumped over 4%. Federal Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank also surged 2-3%.
As of 10:35 am, the index was trading 2.9% higher at 50,414.
Also Read: Modi wave on D-Street! Investors add Rs 12 lakh crore as Sensex skyrockets 2,600 pts to record high
The BJP-led NDA is forecasted to win 370 plus seats, according to the average of all exit polls.
Motilal Oswal said the victory of PM Modi and the BJP augurs well for the economy and capital markets as it provides stability and continuity in policymaking with a single-party majority government, which will be expected to continue pushing its economic agenda.
The brokerage remains overweight on financials and PSU banks. Among top ideas, Motilal Oswal likes ICICI Bank and SBI from the banking space.
Sanjiv Bhasin, Director of IIFL Securities, said, “I am very bullish on HDFC, ICICI, and Axis, even Kotak. But I said the dark horse over there will be RBL. This is the time private large-cap banks should outperform for the rest of the year. So, we have an overweight on these private large-cap banks.”
Last week, CLSA identified SBI, Canara Bank, and Bank of Baroda in its list of 54 “Modi stocks.”
“Modi stocks” refer to 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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