Market-Cap of all good PSUs stood 19.45 Lakh, Hindustan Copper is top gainer

Market-Cap of all good PSUs stood 19.45 Lakh, Hindustan Copper is top gainer

New Delhi: The combined market capitalisation of all top Public sector companies including Hindustan Copper, NBCC India, and Indian Bank stood Rs. 19.45 lakh highest since 2017. Shares of state-owned companies have outperformed the broader indices so far this year with the total market value of these entities gaining Rs 3.84 lakh crore, or 28 percent, since January 1 as against the 5.8 percent advance in the Nifty.

Prime Minister Narendra Modi’s remarks that the government has no business to be in business and that his administration is committed to privatizing all PSUs too have rekindled investor interest in these companies. Cheaper valuations, high dividend yield and strong cash flows have added to the optimism.

“Despite a sharp rally in the overall market, PSU stocks are available much cheaper in terms of relative valuations to their respective sectors,” said Harsha Upadhyaya, Chief Investment Officer - Equity, Kotak Mahindra AMC. “Some of the PSUs are re-rating candidates purely in terms of valuations.”

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