🟢 At a Glance:
With Lok Sabha 2025 results just hours away, D-Street is bracing for high drama. PSU stocks — from banks to railways to defence — have already run up like there’s no opposition. But what if the actual results deliver a surprise? Will this be another 2014-style rally or a 2004-style rug pull?
🏛️ Why PSU Stocks Love Political Stability
Public Sector Undertakings (PSUs) perform best when:
- A stable government is in power
- Policy decisions are predictable
- Divestment and capex plans are executed smoothly
PSUs aren’t tech unicorns. They’re government-adjacent dinosaurs who need policy oxygen to breathe.
Every Budget announcement is like Tinder for PSU stocks. One right
swipe — and boom, circuit!
📈 The Pre-Election Rally: Already Priced In?
Nifty PSE Index is up 34% in the last 6 months. Why?
- High dividend yields (NTPC, Coal India)
- Record order books (BEL, BHEL, GRSE)
- Capex push & Make in India tailwinds
- Fiscal surplus optimism
But the rally also has election expectation premium priced in.
- Analysts expect continuity in policies
- If a coalition government or policy uncertainty arises, expect corrections
🛑 What Happened in 2004: A Brutal Reminder
Let’s go back:
- Markets expected NDA to win
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