On November 25, the broader market saw a significant rally, with the Nifty Smallcap 100 and Nifty Midcap 100 indices surging nearly 2% each. This was driven by strong buying interest across all sectors.

The rally in PSU stocks was a major factor, following the BJP-led Mahayuti alliance's victory in Maharashtra, securing over 200 seats. Analysts believe that this outcome indicates a continuation of the central government’s development agenda, which is expected to boost market sentiment. Kotak Institutional Equities predicts limited fiscal consolidation and increased central government capital expenditure in the latter half of FY25, benefiting sectors like infrastructure, urban development, and manufacturing.

Furthermore, Motilal Oswal Financial Services suggests that the BJP's win in Maharashtra could lead to more cohesive center-state politics, potentially speeding up stalled infrastructure projects and addressing pending issues. This would have a positive impact on PSU companies, manufacturing, and real estate sectors.