Do PSU stocks really rally because of elections?

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Hello folks. You're tuned into Finshots Daily. In today's episode, we explore whether PSU stocks rally because of elections or because of policy reforms and market expectations. Before we begin, here's a quick word from Team Ditto. Life has a way of surprising us, and not always in a good way. Sometimes it's a sudden illness or an unexpected hospital visit that can shake up everything. In India, families still pay about thirty-nine percent of medical expenses directly from their own pockets, and just one hospital stay can wipe out years of savings. The easiest way to protect yourself is by getting a good health insurance plan. It's way cheaper than footing one huge bill. And if you're unaware where to start, book a free call with Ditto. No spam. Just honest jargon-free guidance trusted by over eight lakh people for their health and term insurance needs. The link is in the description. Now back to the story. Every election season, a familiar theory makes the rounds in Indian markets. Buy public sector undertaking stocks or PSU stocks because governments spend more, announce bigger projects, and prefer visible economic momentum when votes are around the corner. And the logic feels almost too neat to question, right? After all, public sector undertakings sit at the center of infrastructure, defense, railways, banking, oil, power, insurance, utilities and more. So if the government wants to push growth, many of these entities are natural vehicles through which that push is delivered. That is why PSU stocks are often perceived