FY24 Stock Market Recap: BSE PSU index gains 92%, 37 stocks surge over 100%; check top gainers
BSE PSU index, a barometer of public sector enterprises' performance, zoomed from 9,497 points to 18,274 points, translating into a stellar gain of 92.4%. The government's accelerated capex spending, coupled with sector-specific reasons, has helped PSU stocks achieve record gains in FY24. In the recent interim budget (FY24-25), the government raised the capital outlay by 11.1% to ₹11,11,111 crore, equivalent to 3.4% of GDP.
Also Read: Nifty 50 to Sensex: Why Indian stock market outshined gold returns in FY24? Explained with 5 crucial factors Furthermore, the prospect of political stability, especially in light of the anticipated victory of the BJP in the upcoming Lok Sabha elections in May, has emerged as a significant factor in FY24. This expectation has infused bullish sentiment among investors, amplifying projections for sustained capital expenditure (capex) growth. Moreover, the combination of strong order acquisitions from the private sector coupled with limited liquidity in PSU stocks, largely due to the government's significant stakeholding, has created a supply-demand gap.
This discrepancy has subsequently propelled stock prices upwards. Further, the government's aim to limit the fiscal deficit to 5.1% for FY25 has provided additional support to PSU bank shares. Their robust performance in the first three-quarters of FY24 has also boosted their stock values.
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