Maharashtra election win boosts optimism in PSU and banking sectors

Investor confidence in Public Sector Undertakings (PSUs) has risen after the BJP-led Mahayuti alliance's decisive victory in the Maharashtra assembly elections. A market expert, Sunil Subramaniam, has pointed out that the alignment between the central government and the Maharashtra government is expected to improve policy implementation and speed up government spending.

This renewed optimism has been reflected in the markets, with the BSE CPSE index increasing by almost 3% during mid-day trade on November 25. Railway PSUs and NBCC have been major contributors to this upward trend, and the BSE PSU index has also seen a rise of over 3%. Notable gains have been observed in PSU lenders such as Central Bank, Indian Bank, and UCO Bank, indicating a positive change in investor sentiment towards the sector.

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