Unprecedented Surge in Indian PSU Stocks

Unprecedented Surge in Indian PSU Stocks
Unprecedented Surge in Indian PSU Stocks
Unprecedented Surge in Indian PSU Stocks
Unprecedented Surge in Indian PSU Stocks

Unprecedented Surge in Indian PSU Stocks

Unprecedented Surge in Indian PSU Stocks

Unprecedented Surge in Indian PSU Stocks

Indian state-owned companies have witnessed an unprecedented surge in Fiscal Year 2024, outperforming mid-and small-cap stocks and emerging as market champions.

Despite initial pressure, PSU stocks surged in 2020, with the BSE PSU index skyrocketing from 9,497 points to 18,274 points, marking a remarkable gain of 92.4%.

Factors Driving Growth & Sector-wise Performance

Accelerated government spending, increased capital outlay in the interim budget, anticipation of political stability, and strong order acquisitions from the private sector have fueled the surge in PSU stocks. Additionally, limited liquidity due to government stakeholding and efforts to curb fiscal deficit have further boosted stock prices.

PSU banks witnessed a 40% surge in profits, with anticipation of exceeding ₹15,000 crore in dividend payout. Railway, power, defence, and oil sectors also showcased robust performance, driven by government initiatives and strong market demand.

Remarkable Returns

Out of 56 stocks in the BSE PSU index, 37 stocks delivered multibagger returns, with IRFC leading at 458%, followed by HUDCO and MRPL. Several other stocks also yielded impressive returns ranging from 100% to 330%, indicating the phenomenal performance of PSU stocks in FY24.

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