IRFC, RVNL, BoB to IRCTC: Is it wise to buy PSU stocks as Nirmala Sitharaman retained FM in Modi 3.0 cabinet?
Modi cabinet 2024: After the formation of the Modi 3.0 government in New Delhi and Nirmala Sitharaman being retained as Finance Minister, the market is expecting continuity of the business and economic policies for the next five years. From the Indian stock market, investors must have their fingers crossed that PSU stocks will deliver the same kind of returns in the next five years.
They said that the Modi government kept a special focus on the revival of PSU companies, and they were able to compete against their private peers during the last five years. So, Nirmala Sitharaman being retained as Finance Minister in the new Modi 3.0 cabinet means a further extension of those policies.
Hence, one should hold PSU stocks if they already have in their portfolio. They also advised investors to look at high-quality PSU stocks in the railways, banking, energy, power and infrastructure sectors.On what Nirmala Sitharaman as FM means for the PSU stocks, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "Ever since Modi government took over in centre, they have been instrumental in the revival of the PSU companies and enabling them to compete against their private peers.
This process took some time and started paying dividends in the Modi 2.0 government as most of the PSU stocks outperformed their private peers, and they delivered multi-bagger returns with a huge margin in the last five years. Shares like RVNL, IRFC, Bank of Baroda, NBCC, etc., have delivered whopping returns to their shareholders in recent years.
This could become possible because of FM Sitharaman's policies in the last five years. As Sitharaman has been retained as FM for the next five years, the market is expecting further extension of those
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