BJP's Maharashtra win puts spotlight on PSU stocks; will momentum sustain till Budget 2025?
PSU stocks and D-Street experts see this momentum to continue in the run-up to next year's Union Budget. While valuations still remain a concern for many, the road ahead is likely to be stock specific, they say, arguing that the recent correction is offering pockets of opportunities to make entry in the state-run company stocks.
An analysis of the 59-stock BSE PSU index reveals 39 stocks that have witnessed a decline since June 4, the day when the general election results were announced. In this, 30 have fallen in double digits. The worst losers are Bharat Dynamics, Cochin Shipyard, Ircon International, Mangalore Refinery And Petrochemicals (MRPL), falling between 39% and 20% as on November 22 (a day before the announcement of Maharashtra assembly election results).
Eight stocks have fallen in single digits in the same period between 6% and 1% viz. Bank of Baroda (BoB), Bharat Petroleum Corporation (BPCL), Coal India, Gujarat Mineral Development Corporation (GMDC), Hindustan Aeronautics (HAL), Life Insurance Corporation (LIC), NBCC and NMDC.
Not all have been duds as 20 stocks have seen prices appreciate post June 4. The most remarkable rally has been in National Aluminium Company (NALCO) with the counter rising by 62%. It is followed by Mazagon Dock Shipbuilders (49%), NLC India (28%) and Oil India (28%). Five other stocks have given double-digit returns between 20% and 10% namely Rail Vikas Nigam Limited (RVNL), REC, Power Grid Corporations, Power Finance Corporation (PFC) and NTPC.
Ace Equity data on the BSE
