FROM WHITE ELEPHANT to a galloping beast. That has been the evolution of public sector undertakings (PSUs) in the past few years. Once seen to be slow and inefficient, PSUs have managed to stage a smart turnaround in recent years with initiatives and reform measures taken by the government bearing fruit. The government’s focus on public expenditure in recent years has also put the spotlight on these firms and made them at least partly shoulder the responsibility of a revival in investment.
Reflecting these changed dynamics, PSU stocks, too, have displayed robust profitability growth and strong market performance in the past couple of years. In the past 12 months, the BSE PSU index has outperformed the large-cap and broader equity benchmarks. The BSE PSU index has rallied 96% in the past year (as of July 31, 2024), while the benchmark BSE Sensex and BSE 500 have surged 23% and 37%, respectively. In fact, select PSU stocks have surged by up to 660% in this period.
Aamar Deo Singh, Senior Vice President of Research at brokerage Angel One, says the government’s focus on infrastructure and manufacturing sectors has helped PSUs. “Special stress on railways and defence also helped many of the PSUs deliver solid performance and further, the priority given to ‘Make in India’ also aided in this stellar growth. Also, the thrust on infrastructure in terms of building highways, power [assets], ports, and airports have also helped the PSU pack,” he says.
This story is from the September 29, 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 29, 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky