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.
Bu hikaye Dalal Street Investment Journal dergisinin May 06, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Dalal Street Investment Journal dergisinin May 06, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Risk Profiling in Mutual Funds
Whether you lean towards equity, debt or hybrid investments, recognising your risk tolerance is paramount. By conducting a risk profile assessment, you gain foresight into potential investment risks, mitigating any future unease before it arises. Rakesh Deshmukh takes a closer look at the scenario to see how it works
"The Future Of Mutual Funds Looks Promising"
Given that the current landscape of mutual funds is dynamic and evolving, Rashida Kalolwala, Coo, Edelweiss Mutual Fund, states in this interview that the shift towards digitalisation and the emphasis on transparency are some of the factors that will further propel the growth of the mutual fund industry
ETF Vs Stock Liquidity
Exchange traded funds (ETFs) have undeniably revolutionised the investment landscape for both investors and financial services professionals alike. They offer opportunities to diversify portfolios, manage risk more effectively, and reduce investment costs. However, to fully harness these benefits, it's crucial to dispel confusion and misconceptions surrounding ETFs Liquidity. The article examines the working of ETFs, their liquidity and how investors can capitalise on them
Road To Prosperity Through Mutual Funds
In the pursuit of financial freedom and wealth creation, mutual funds have emerged as a beacon of opportunity for investors in India.
Global Equities Rise Amid An Unsurprising Earnings Season
The S&P 500 Index approached its historical peak and marked its third consecutive week of positive performance in mid-May. Concurrently, other major indices also experienced gains, with value stocks surpassing growth-focused equities.
Commodity Traders To Monitor Key Indicators For Favourable Trade
In the past fortnight, the commodity market oscillated between gains and losses, driven by statements from some FOMC officials emphasising a \"higher-for-longer\" approach to monetary policy, juxtaposed with softer economic data from the US supporting arguments for the Federal Reserve to start monetary easing this year.
Understanding How Businesses Get Premium Valuations
Valuation premium is like the extra amount a buyer is willing to pay for a company or asset beyond its basic value. This happens when the buyer believes the company is worth more than its current price. Vaishnavi Chauhan takes a closer look at this parameter as applicable to various sectors
India's Power Sector Set For A Surge
As the world's third-largest energy market, India's energy needs are expected to double by 2050, driving explosive growth and potentially transforming the country from an energy importer to an exporter, particularly in renewable energy. This shift offers long-term investment prospects for those looking to capitalise on India's energy boom
Q4 Earnings Signals Growth
As investors eagerly await the outcome of the ongoing Lok Sabha elections, hoping for a decisive political mandate, the equity markets are witnessing heightened volatility, along with optimism driven by quarterly financial results and expectations of a post-election result rally. Mandar Wagh analyses company performances sector-wise to offer deeper insights into the future outlooks of various sectors, considering growth triggers and risk factors.
The AI Value Chain
Artificial intelligence has found its way into stock trading and has helped streamline the processes while also helping investors and traders deal with huge amounts of data. In fact, Traditional AI is now making way for Generative AI to give a further edge to those who need to choose, buy and sell stocks at a much faster rate. Vaishnavi Chauhan takes a deeper look at how AI works as an evolutionary technology
