Modi 3.0 impact: Nifty PSU Bank Index jumps 4% led by IOB, CBI, Union Bank, Bank of Maharashtra

The Nifty PSU Bank index surged up to 4.4% in intra-day trading, marking the second consecutive session of gains, following a 2.5% jump on June 5, after the confirmation of the BJP-led NDA forming the government. This rise contrasts with the 15% decline on June 4, post the tighter-than-expected election race. \r

All PSU Bank constituents witnessed gains today, with Indian Overseas Bank, CBI, Union Bank of India, and Bank of Maharashtra rising over 5% each. The index, up 72% over the past year and 28% year-to-date in 2024, experienced a 1% decline in the first three sessions of June after a 2.9% loss in May. \r

The surge reflects improved investor sentiment post-2024 Lok Sabha election results, signaling political stability under the NDA government.