PM Modi's Advice on PSU Stocks in Rajya Sabha: LIC, HAL

How PSU’s Are Becoming Multibaggers in the Stock Market

Six months back, Prime Minister Narendra Modi spoke in Parliament, suggesting people to think about investing in Public Sector Undertakings (PSUs). He talked about how PSU shares could be beneficial and encouraged folks to explore these opportunities in the stock market. Today, a similar thing occurred when the Prime Minister of India delivered a speech that lasted around 1 hour and 45 minutes. In this speech, he mentioned LIC and PSU banks shares again. In this blog, we'll discuss how Modi's speech might affect PSU banks and also list the 22 PSUs mentioned by Modi.

Phenomenal Growth in PSU Shares

Following PM Modi's advice, PSU shares have witnessed remarkable growth, becoming multibaggers in a short span of time. The PSU index, comprising 56 shares, has seen its market capitalization surge by approximately 66 percent in just six months, reaching nearly 60 lakh crore rupees.

Investor Benefits and Positive Returns

Investors who heeded PM Modi's advice have reaped significant benefits. The rise in share prices has resulted in a staggering benefit of 23.5 lakh crore rupees in less than six months. Notably, none of the shares of government companies included in the PSU index have given negative returns during this period.

Success Stories in the PSU Sector

Even previously underperforming PSU shares have shown remarkable improvement. Shares of State Bank of India (SBI) have recorded a return of 12 percent, while NBCC shares have witnessed an impressive speed of 250 percent in less than six months.

PM Modi's Update in the Rajya Sabha

In a recent address to the Rajya Sabha, PM Modi provided further insights into the growth of PSUs. He revealed that the market capitalization of PSU companies now exceeds 17 lakh crore, a significant jump from the 9.5 lakh crore in 2014. A total of 22 PSUs have become multibaggers, and the net profit has surged to 2.5 lakh crore, which was just 1.25 lakh crore in 2014.

Highlighting Success Stories: LIC and HAL

PM Modi highlighted the success stories of specific PSUs like LIC and HAL, which are currently trading at record highs. This showcases the immense potential and growth opportunities present in the PSU sector.

List of 22 PSUs stocks which has shown positive trends over the period:

1.      ITI (Indian Telephone Industries Limited)

2.      NBCC (India) Limited

3.      IRFC (Indian Railway Finance Corporation Limited)

4.      HUDCO (Housing and Urban Development Corporation Limited)

5.      SJVN (SJVN Limited)

6.      Cochin Shipyard Limited,

7.      MMTC Limited

8.      BHEL (Bharat Heavy Electricals Limited)

9.      IOB (Indian Overseas Bank)

10.      REC (Rural Electrification Corporation Limited)

11.      Mangalore Refinery and Petrochemicals Limited

12.      Rail Vikas Nigam Limited

13.      Punjab & Sind Bank

14.      PFC (Power Finance Corporation Limited)

15.      NMDC (National Mineral Development Corporation)

16.      NLC India Limited

17.      Ircon International Limited

18.      New India Assurance Company Limited

19.      Central Bank Of India

20.      NHPC (National Hydroelectric Power Corporation)

21.      UCO Bank

22.     General Insurance Corporation of India

Conclusion

PM Modi's push for investing in PSUs has yielded significant returns for investors. The rise in market capitalization, the surge in net profits, and the success stories of individual PSUs demonstrate the bright future of these companies in the stock market. For those looking to grow their wealth, investing in PSU shares could be a lucrative opportunity, as advised by Prime Minister Narendra Modi himself.

Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.