Housing & Urban Development Corporation (HUDCO) shares experienced a significant surge of over 8% on November 25, the largest increase in seven weeks.

This rally is a result of the BJP-led Mahayuti alliance's decisive victory in the Maharashtra state elections. The election outcome has reignited focus on the government's capital expenditure plans, leading analysts to anticipate improved government spending in the second half of the fiscal year. This is expected to benefit infrastructure development and real estate stocks.

The first half of the fiscal year saw flat year-on-year government spending, but analysts from Emkay Research believe that the consolidated political capital from the BJP's stronghold in both Maharashtra and the Centre will enable a more focused approach to state-specific issues and accelerate infrastructure investments. The election outcome is seen as a positive signal for public sector undertakings (PSUs) in various sectors, including defense, railways, and real estate, all of which have performed well following the election results.