In the past four years, a total of 52 BSE PSU index stocks multiplied their market capitalisation by nearly 5 times.
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Rail Vikas Nigam Ltd, Hindustan Aeronautics Ltd, Cochin Shipyard Ltd, Hindustan Copper Ltd, Indian Bank, Bharat Dynamics Ltd, Bharat Electronics Ltd and Housing & Urban Development Corporation Ltd delivered 1,000-2,150 per cent returns in the four-year period. In the period, the worst stock was Bharat Petroleum Corporation Ltd which gave 82 per cent return.
As per Business Today, Nikunj Saraf- Vice President at Choice Wealth- said that PSUs often play a significant role in the Indian economy. He said, “Increased defense spending, modernization initiatives, and a push for indigenous defense production could benefit companies operating in this sector. Favorable policies, such as higher defense budgets and incentives for domestic defense manufacturing, could create opportunities for defense-related companies.”
Meanwhile, Jitendra Gohil, Kotak Alternate Asset Managers, said, “This unexpected outcome may trigger a major sell off in PSUs, capital goods, manufacturing (especially PLI scheme related sectors), defence related stocks.”
CLSA in its latest note identified 54 companies which are seen as direct beneficiaries of PM Modi’s policies of which half are PSUs.
Among these are ONGC, NTPC, NHPC, SBI, Power Finance, IGL and Mahanagar Gas, CLSA said, adding, “Remarkably, 90 per cent of Modi stocks have beaten the Nifty in the election-focused rally over the past six months versus only 42 per cent of the other companies outperforming.
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This may continue in the case of a strong election result. L&T, NTPC, NHPC, PFC, ONGC, IGL, MAHGL, Bharti Airtel, Indus Towers and Reliance are the preferred Modi stocks.”
