The past few years have proven to be exceptionally favourable for public sector companies (PSUs). Since 2021, there has been a remarkable turnaround for battered PSU names. This is after Prime Minister Narendra Modi himself batted for the PSUs. The government's emphasis on infrastructure capex, defence indigenisation and the 'Make in India' initiative in manufacturing has led to such a change in the landscape. This renewed focus has led to a re-rating of PSUs as a whole, driven by promising future prospects.
The performance of PSU companies has been nothing short of impressive, both financially and in terms of stock prices. Notably, every PSU company has delivered positive returns during this period, with even the lowest return exceeding 15 per cent. For instance, the shares of Indian Railway Finance Corporation have surged by over 400 per cent in the past year alone, from approximately Rs 28 to Rs 193 before settling at Rs 144.1 presently. This translates to a remarkable growth of Rs 1 lakh investment becoming Rs 4.14 lakhs today.
Similar success stories can be seen across various PSU companies, with Housing and Urban Development Corporation witnessing a staggering 3.41 times increase in its share price over the past year. Moreover, PSU banks have also witnessed substantial gains, with eight out of 12 government-owned banks doubling investor wealth in the last year. PNB emerged as the top gainer, with its stock rallying by 176 per cent, followed closely by Indian Overseas Bank with over 172 per cent growth. Even State Bank of India (SBI), the largest lender in India, saw a respectable increase of 41 per cent in its stock price over the same period, outperforming many private counterparts.
Denne historien er fra May 06, 2024-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 06, 2024-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
