PM Modi says invest in PSUs; Here's how HAL to LIC have performed, experts explain
Stocks to buy today: During no confidence motion debate in parliament, Prime Minister Narendra Modi took a dig at the opposition parties, who criticised his government for not handling the PSU companies in a proper manner. PM Modi said that despite superficial criticism of his govenment on PSU companies, PSUs are delivering robust numbers and they are competing with their peers in style. PM Modi went one step forward and said that Hindustan Aeronautics has reported highest ever revenue while Life Insurance Corporation (LIC) of India has been leapfrogging despite the non-existing odds being raised by the opposition parties.
In a sarcasm to the opposition parties, Modi said that stock market investors may take a cue from the Indian opposition in near term. He advised stock market investors (in lighter mood) to buy those PSU stocks that the opposition critices in future. Even though PM recommended PSU stocks to buy in a lighter mood in parliament, stock market experts believe that its time to accumulate PSU stocks, especially the banking and power stocks as they are expected to outperform other segments in medium to long term.
They said that in recent years, high skilled professionals have been hired to overhaul the management of PSU companies. This helped the PSUs to increase their CAPEX and decrease their provisions and NPA. This has helped companies like HAL and LIC to give strong numbers and this trend is expected to continue.
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