New Delhi. Due to the economy recovering from Corona, the stock market is bright these days. The shares of many companies are at their all-time high. There are still many companies whose shares are going down, especially those of government companies ie PSUs. But experts are speculating that now these stocks can be heavily traded.
AK Prabhakar, Head of Research, IDBI Capital said that apart from disinvestment, there are many other signals working together in case of PSUs and we cannot look at the entire sector from the same perspective. According to him, the business scenario of PSU companies is improving. Whereas, G Chokkalingam, Chief Investment Officer, Equinomics Research, said that investors have started adding these stocks for the medium to long term. Many stocks were hit hard over the years. Expectations of improvement in business scenario and disinvestment will keep these stocks bullish for some time.
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Nifty CPSE index rose 3.24 percent
The Nifty CPSE index rose 3.24 percent on Tuesday. Through this index, the performance of public sector companies on the NSE is measured. In this, especially public sector firms like oil refining and marketing companies Bharat Petroleum, Hindustan Petroleum and Indian Oil also registered gains in the weak market.
PSU companies of these sectors are earning big money
There is a shortage of coal globally, due to which the share of Coal India is rising. Similarly, IRCTC is doing better due to the opening of the economy, as well as it has plans to split shares. Whereas many government chemical companies are performing better due to the increase in chemical prices. Exactly the same situation is with the gas producing companies due to rising gas prices. BPCL and public sector banks are getting benefits due to disinvestment.
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Till now the companies were lagging behind in the exchanges
PSU stocks have gained some ground in the last 10 years, but have mostly remained lagging on the exchanges. The BSE PSU index has gained just 7 per cent in the last 10 years, compared to 253 per cent in BSE Sensex, 304 per cent in BSE Midcap and 298 per cent in S&P BSE Smallcap index.
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Orignally published at Tailored Stash
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