Twin tailwinds of faster economic growth and long-awaited sectoral re-rating. 5 PSU banks with an upside p
In March's market correction, the initial correction was led by PSUs. Both PSU banks & non-bank PSU. Given that both sets of gained sharply, profit booking was natural. But if one looks at the broader contours it is clear that while the PSU banks corrected, the magnitude of the correction was not very high. For example, if after gaining over 100% in 2023, the stock corrects 10-15 %, it is a bullish sign and not bearish. If one looks at the table, in all time frames the selected PSUs have delivered positive returns except in one stock where 1-month returns are negative. This trend is normally witnessed when there is more delivery-based buying based on positive fundamental changes. As the economy continues to move on a path of higher growth, they probably are the best to play the theme, if you are able shed historical baggage which sometimes hit the Street. Key Points
Economic TimesAll 4 best performing mutual funds since last Holi are about PSU stocks. Did you miss the boom?
We considered all equity categories such as large cap, mid cap, large & mid cap, multi cap, small cap, ELSS, flexi cap, focused fund, value, contra, sectoral and thematic funds. We calculated returns starting from March 8, 2023 to March 22, 2024. We considered all regular and growth option schemes. Key Points
Economic TimesDecoding the surge: Analysing the meteoric rise of Nifty PSU Bank index since 2022
The arrival of COVID-19 further exacerbated the situation, causing global equities to plummet. PSU stocks, which already appeared devalued, experienced an even more precipitous decline. The selling climax reached its pinnacle in 2020, with the index plummeting towards the 1000 mark. Key Points
Economic TimesETMarkets Smart Talk: Golden opportunity! Broking, defence, green energy among 5 sectors that could create
Robin Arya says: The consistent flow of monthly SIPs indicates a tremendous opportunity in the broking and wealth management space. Defence is another sector we see with the potential to change dynamics and deliver significant returns in the next 3-5 years. Volatility ensued post-budget, but Nifty managed to hold crucial support levels. Key Points
Economic TimesBernstein recommends high-momentum, dividend-yielding PSU stocks amid soaring valuations
PSU stocks have surged, with 68% delivering multi-bagger returns. The index gained 101% in a year, outpacing benchmarks. Despite the bullish trend, questions arise on sustainability. Bernstein highlights select opportunities in high-momentum and dividend-yielding stocks with reasonable valuations. Key Points
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Looking for PSU stocks to buy? Go with momentum, dividend yield, says Bernstein
The PSU index is expensive, trading at 11.2x fwd PE and 1.8x PB which is +1SD to the historical average. However, relative to the broader market (BSE 500), PSU portfolio is still trading below the historical mean on 12-month forward PE and just slightly above the mean on PB. Key Points
Economic TimesMutual funds join multi-billion dollar PSU rally, eye 2014 record in election year
The ownership of PSUs in mutual funds has reached a 3-year high as mutual fund managers chase the momentum in Indian PSU stocks. The sharp outperformance and re-rating potential, along with sector-specific triggers and the 'Modi ki guarantee' factor, have fueled interest in PSU stocks. Nifty CPSE has more than doubled in last one year. PSU banks are outperforming private sector banks due to low valuations which many consider to be fair even after the run-up in stock prices. Key Points
Economic TimesPSU re-rating not over yet, bets Jefferies and shares top 3 stock picks
PSU stocks have rallied, partly supported by the govt's capex push but sector-specific reasons have also helped. The PSU Bank index has advanced 78% YoY, outperforming the private banks by 70 ppt, while oil PSUs have seen a sharp rally since October 2023 as the govt chose not to cut auto fuel prices despite a busy election calendar and a drop in crude oil prices. Key Points
Economic TimesModi ki guarantee on PSU stocks! 22 multibaggers, Rs 24 lakh crore profit after PM speech
The 56-pack BSE PSU index has seen its total market value soaring 66% to Rs 59.5 lakh crore, giving investors a profit of Rs 23.7 lakh crore on current market prices. None of the PSU stocks in the list have given negative returns since PM's speech less than 6 months ago. Even the worst performer SBI is up 12% while the top gainer NBCC has skyrocketed 249% in no time. Key Points
Economic TimesStock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 36%
The script of the up move in the markets continues to be the same, PSU’s, so whether it is PSU banks or any other non-bank PSU, on the list of top gainers is being dominated by them once again. Well there is no point in guessing till when this up move can continue in in PSU space, but if one is looking for investing in non- PSU space, it would be better to focus on fundamentals and if there is any improvement in them which has made the overall score go up in the last one month then have a look at those stocks. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame. Key Points
Economic Times
Pharma is the play for outperformance now; weakness in 3 sectors: Rohit Srivastava
Rohit Srivastava says: The PSU Bank Index has been one of the most robust parts of this month. So far today it is holding the 20-day average and you cannot rule out that it will attempt to go higher in the next couple of days. But the more this segment goes up, the more it is getting to a point where one would want to take a slight backseat on PSU banks.” Key Points
Economic TimesIs it time for them to get re-rated? Only for moderate risk takers, 5 mid & small-sized PSU banks
When a sector gets re-rated, it is the leader of that particular sector which tends to get the attention in the first leg. If the fundamentals of that sector continue to improve, then companies which are lower than in terms of scale and size are the ones which tend to get re-rated. If one looks at the re-rating of PSU banking space, the likes of SBI, BoB had started to do well some time back. But the mid and smaller PSU banks, not smaller when one looks at the market cap, but in terms of geographical presence and overall size of the business are likely to get more attention now. There are multiple reasons for it: GDP growth rate has a strong correlation with credit off take, which will be visible even in the books of these banks. Some of these banks started their digital journey late, the impact of which will be visible in the coming quarter. Key Points
Economic TimesNext one to get re-rated? 7 PSU banks with upside potential of up to 38%
There are many sectors which have seen a re-rating in the last nine years. Especially in sectors like railways, defence where both the policy direction and funds both come from the government have seen a strong performance. There is another sector where policy making has an impact but it takes more to show its impact that is PSU banking space. With better than expected GDP numbers and the fact that state elections have thrown results, which street would take a sign of continuation of the current policies of clean up of the sector, will PSU banks see another round of push. ? Key Points
Economic TimesJonathan Schiessl on why there is some justification for higher valuations in India
“In the PSU sector, there is always a risk of divestments or other sort of factors at play. So generally, we shy a little bit away from them. But I think, you know, as we all know, when the market trades at reasonably punchy valuation, people do start looking at the PSUs again. And obviously, there are some sectors where the PSU players give you pretty good exposure as well.” Key Points
Economic TimesShedding the baggage of history? 7 PSU banks with upside potential of up to 37%
PSU banks have been performing well on the street for the last more than one year. Even in the correction which the market saw last in the last couple of weeks, PSU banking stocks are amongst the first to rebound when there is any sort of recovery in the market. The reaction of the street to their Q2 earnings is also indicative of underlying hope in the sector. But the whole operating landscape of each PSU bank is very different, right from the exposure to particular sectors and industrial groups to the geographical region in which they are operating. So while they are called as one PSU space, each of them probably will have its own journey. So should you be selective in looking at them or buy them as a basket? Key Points
Economic Times
ETMarkets Smart Talk: Time in the market is ultimate Rohit Sharma for driving wealth creation in your port
Time in the market is crucial for wealth creation. Geopolitical concerns, such as higher oil prices and active military action in the Middle East, can have a long-term impact on equity markets. Buybacks are becoming common as they are more tax-friendly for investors and allow companies to return excess cash. The commodity cycle may be affected by geopolitical concerns, with oil being the outlier. SIPs and other non-discretionary flows into equities provide a liquidity cushion for Indian equities. Key Points
Economic TimesWhat’s the chance of an LBW in PSU and defence stocks? Saurabh Mukherjea explains
Saurabh Mukherjea of Marcellus Investment Managers, expresses concerns about the broader PSU capex theme in India. He believes that the government's heavy spending on sectors such as roads, defence, and power is not supported by underlying tax collections. Mukherjea also discusses the potential performance of HDFC Bank and highlights the worries surrounding the PSU capex recovery. He mentions that the implosion in China could benefit India's economy, and expresses optimism about the Indian IT services industry. Key Points
Economic TimesPSUs have their own strengths. 4 large cap PSU stocks with an upside potential of up to 33%
At a time when interest rates are at elevated levels, PSU stocks have an advantage. Of all the PSU stocks, which our algorithms come up with, we took PSU companies from three sectors: financier, power generation and logistics. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . Key Points
Economic TimesPSU’s have their own strengths, 4 large cap PSU stocks with an upside potential up to 34%
At a time when interest rates are rising PSU stocks have an advantage. Of all the PSU stocks, which our algorithms come up with, we took PSU companies from three sectors: financier, power generation and logistics. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . Key Points
Economic TimesTrimming PSU stock positions gradually: Anish Tawakley, ICICI Prudential Mutual Fund
ICICI Prudential AMC's Deputy CIO - Equity, Anish Tawakley, advises caution on PSU stocks due to valuation concerns. The team focuses on domestic cyclical sectors and has thrived by spotting the recovery in the real estate cycle and early homebuilding activity. They monitor capacity utilization, earnings expectations, and manufacturing performance. Key Points
Economic Times
RVNL shares hit 52-week high, rally over 18%. Here’s why
RVNL shares were up 18.18 per cent to Rs 288 apiece at around 1:28 pm on the Bombay Stock Exchange (BSE). In early trade, shares of the Railway PSU hit a fresh 52-week high of Rs 288.65. Key Points
India TodayPSU job recruitment through GATE score: Eligibility criteria, benefits
PSU recruitment 2023: PSU jobs are more reliable through GATE entrance exam. Candidates can check the availability of PSU jobs at the official website of PSU — psuconnect.in Key Points
The Indian Express74 BSE500 stocks gave double-digit returns in February; can gains sustain?
In February, 74 stocks on the BSE 500 gained double-digit returns of up to 32%. Hindustan Petroleum Corporation, CONCOR, Bharat Electronics, and others were among the top performers. Anish Tawakley of ICICI Prudential AMC has turned cautious on PSU stocks. Key Points
Economic TimesSarkar Raj is here! 3 out of top 5 dominating sectors of Q2 are from PSUs
Nifty PSU Bank is in fact on the verge of a 13-year breakout to touch fresh lifetime highs on the back of good system-wide credit growth, stable asset quality, and attractive valuations. In between, Nifty Bank, which is dominated by HDFC Bank and ICICI Bank, is flat while the bluechip index Nifty has gained just 2.5%. Key Points
Economic TimesFrom 'bhootiya bangla' to record high: PM Modi on LIC stock rally
LIC, which was struggling to cross its IPO price of Rs 949 in 2022, has now breached the Rs 1,000 mark with analysts gunning for more gains ahead on expectations of growth revival in FY25. The possibility of a steep change in dividend will continue to support its share price performance. Key Points
Economic Times
8 PSUs including IRFC, Bharat Electronics entered ₹1 lakh crore market cap club in last one year; check full list
17 Indian public sector companies now have a market capitalisation above ₹one lakh crore, with eight joining the club in the past year. LIC emerged as the most valued PSU firm, surpassing SBI, while ONGC secured the third spot. Key Points
mintInvesting in PSUs: Risks are of a different nature and so is reward for these 45 public sector stocks
Few years back, for a PSU stock to do well there was an unwritten rule on Dalal street. Is that company a divestment candidate? If yes, then the street would look at in a positive manner otherwise it was a no go area. Nobody on the street was interested in looking at whether the company is growing at a good enough rate, what the business was, whether it had any moat or not. Over the years, as no divestment took place, interest in PSU came down. The only time there was some activity at these stocks was when dividends were announced as the yield was high in these stocks. But then all of sudden things changed. In the last nine months, PSU stocks are the new stars of Dalal street. Will 2024 see the continuation of this trend ? Key Points
Economic TimesStrong Buy, Buy or Hold: Are PSU bank stocks reflecting the loan book clean-up and return to dividend payi
After years of under performance, in the last one year, both at an index level and individual stocks levels, PSU banks have seen much better price performance. Though even after all this performance they are still far below the level where they used to trade. So If one goes by what analysts are saying, it will be extremely stock specific. The story has a list of banks with PSU banks with Strong buy, Buy and Hold recommendation Key Points
Economic TimesAbhishek Agarwal sees Nifty trading in 17,000-18,500 range in FY24; PSU could be dark horse
Rockstud Capital Managing Partner Abhishek Agarwal predicts that Indian markets will remain range-bound between 17,000 and 18,500 due to factors such as inflation and foreign investors moving out of emerging markets. However, he believes that PSU banks will perform well due to NPAs falling on a quarterly basis and a higher share of the marginal cost of funds based lending rates. Key Points
Economic TimesShould you stick to PSU stocks or exit after multibagger returns? Kotak Equities recommends this
Kotak Institutional Equities highlights the flawed rally in PSU stocks driven by bullish sentiments and incorrect valuation methodologies. The rally lacks meaningful change in fundamentals or structural reforms. Concerns arise about the long-term viability of PSUs due to reinvestment in sunset industries and government policies. Key Points
Economic Times
Reconstruction and restructuring paying up finally? 7 PSU banks stocks with upside potential of up to 16%
While PSU banks stocks have been doing well for more than an year, it is the divergence between the performance in the PSU and private sector banks which has brought more limelight on PSU banks. Given the fact that stocks have done well and comparisons are bound to be made with the fact that just a year back they were quoting at much below what they are quoting today, will this performance sustain. The answers to this question would not be in black and white, but in probability and possibility. The fact that these banks have gone through a process of restructuring and reconstruction for almost seven years, through which they have braved covid, mergers and changes in process in how the decisions in terms of lending are made their balance sheets much more believable. This is not to say that in future there would be no NPA’s but the fact is the probability of the sudden shock of NPA’s shooting up has gone down. So, before taking a decision it is better to look at what has changed on the ground both at macro and micro level for this part of the Indian banking sector. Key Points
Economic TimesBest way to play on growth of Indian economy: These bank stocks can give more than 18% returns
After a very short phase of a correction, several PSU bank stocks were the top gainers in Tuesday's trading session. Today on Wednesday they are trading with minor cuts and some of them have seen intraday recovery. This is worth noting for two reasons. First, all PSU banks are sitting with a decent amount of gains for the last five months, and even then they have not witnessed a sharp decline. Second, on Tuesday, the breadth of the market was weak. Suddenly PSU turns into an outperforming set of stocks. It signals a couple of things. First, because the banking sector is probably the best proxy play to the Indian economy. It appears the view on the street is positive on economic growth. Second, rather than taking exposure to an individual sector, taking exposure to PSU banks which are still among the lot that are available at relatively cheaper valuations is a trade on the street. But should one ignore the private banks? Probably not. They have their trajectory and just because they have not performed on the street it does not mean their core business model has some issues.. It's just another phase that shall pass. Key Points
Economic Times8-10% correction likely in Nifty as well as broader markets: Amit Khurana
Amit Khurana, Head of Equities at Dolat Capital, expects a broader correction of up to double digits on the Nifty. PSU banks have been downgraded due to mean reversion in credit costs. Some pockets of the PSU universe, such as city gas distribution companies, still offer value. Shriram Finance is viewed positively. Key Points
Economic TimesIndia’s state-run firms seen extending dream rally on Modi bets
Modis government is spending billions of dollars on everything from roads and railways to defense, renewing interest in a sector that has for long been a straggler of Indias $4 trillion stock market. The S&P BSE PSU Index, a gauge that includes some of the nations largest power utilities, miners, oil refiners and engineering firms, has surged 44% thus far in 2023. Key Points
Economic TimesIs it too late to enter PSU banking space now? Rahul Shah answers
“These last two years, especially the last six to seven quarters, have been PSU banks. The numbers have been better and what the management has guided, most of the banks have delivered that way.” Key Points
Economic Times
4 PSU stocks look attractive at current level, for others wait for 5-10% dip: Kunal Shah
“However, other PSU stocks may require a correction of 5-10% for an ideal buying opportunity. Investors are advised to consider adding more of the mentioned stocks during any dips,” he says. Key Points
Economic TimesNifty public sector enterprise index stocks: A re-rating of different kinds. Will it sustain and create we
The recent re-rating of PSU stocks has happened due to multiple reasons. Right from realization on the street that to paint everything to same brush just because they are owned by government and ignore the fact the growth element is probably not right approach to the fact that there are some business where cost of capital and policy factor are loaded in their favour of PSU and that will not change any time soon. Key Points
Economic TimesBooster Shot! Govt's capex pill turns 13 PSU stocks multibaggers in 2023; will marathon continue next year
On a year-to-date basis, the S&P BSE PSU index has rallied more than 50% and scaled a lifetime high of 15,531 earlier this week. Meanwhile, the benchmark Sensex has given a little over 16% returns in the same period. A significant chunk of the gains in PSU stocks came in December, with as many as 28 of them clocking double-digit gains, after the strong victory for the Bharatiya Janata Party (BJP) in the state assembly elections of Chhattisgarh, Madhya Pradesh, and Rajasthan. Key Points
Economic TimesRailway stocks lead the charge as PSUs gain up to 56% in one month. Should you buy?
Railway stocks dominated the PSUs that have offered double digit returns in April 2021, according to an analysis by ET Markets, with Railway Vikas Nigam leading the charge after shares rose more than 50% in a month. Other transport stocks, Ircon International and Indian Railway Finance Corporation, also posted healthy gains. Analysts attribute railway stocks' success to the INR2.5tn ($34bn) capex budget for rail infrastructure outlined in the recent Indian budget. Analysts, however, urge caution as the government may sell-off PSU stakes through an initial public offering or offer-for-sale, negatively impacting stocks. Key Points
Economic Times2 auto stocks Sanjiv Bhasin is bullish on for near term
So I think it will continue to be in a little range bound. We have to understand that the pre-provisioning operating profit was above sentiment, but maybe this was a one off. However, like I said, maybe the sheer weight of being such a large heavyweight will keep it under check. And I think today it could be a little bit weak . But if you have a longer term view, then definitely State Bank is one PSU bank where long term money should find its way. Key Points
Economic Times
Don’t run after all the underdogs; PSU banks are where the juice is: Digant Haria
“Just because BJP has won the elections and the probability of them coming back with a bang in May is extremely high, it does not make sense to buy the stocks where the results will not be there because this market is in a phase where there is a lot of rotation happening. If the results do not follow through, you are going to be disappointed.” Key Points
Economic TimesDoes high IPO excitement mean market is about to peak out? Vikas Khemani answers
“Every company which is going public is not good. In the SME segment, we are seeing absolute crazy subscriptions for companies that have not been around for long, comparing valuation to major companies. In the main board, I am not seeing many euphoric cases yet though it might get there. I am worried about that aspect.” Key Points
Economic TimesForget Vedanta, look at rest of the metal pack: Daljeet Singh Kohli
Daljeet Singh Kohli, Head of Strategy & Research at Vasuki India Fund, advises retail investors to refrain from buying or staying in Vedanta due to its demerger exercise, which he believes is primarily a debt management exercise rather than value unlocking. He suggests that it may take 12 to 15 months for any major benefit to be realized, making it a long-term investment. However, Kohli remains positive on the metal pack and recommends exploring other options within the sector. He also expresses positivity towards PSU banks. Key Points
Economic TimesFY24 Stock Market Recap: BSE PSU index gains 92%, 37 stocks surge over 100%; check top gainers
Indian state-owned companies' stocks surged in FY24, outperforming mid- and small-cap stocks. BSE PSU index nearly doubled, boosted by govt's capex spending hike and anticipated BJP victory. Railway, power, defence, and oil sectors also showed impressive gains. Key Points
mintONGC, Oil India shine among OMCs; won’t make money by blindly buying PSU stocks at this level: Chakri Loka
The PSU sector has gained attention, but the market cap and valuations of individual stocks are not overheated in the long-term context. Now we can expand the story to many of the other stocks in the PSU space. While many PSU stocks have seen significant gains in the past year, caution is advised in blindly buying at current levels. Key Points
Economic Times
A rotational trade underway for good? 5 PSU banks with upside potential of up to 34%
Probably banking is a word which many may not like to hear given the fact that the fall has been led by the banking sector. But the fact is short term market moves are different from what is happening in the real business. In the case of PSU banks, there has been an improvement in performance in the last two quarters. Yes, there will be some cyclical pressure on margins but beside margins there is more to PSU banking space, which is credit off take that too from large private corporates. Given the higher probability of capex cycle is likely to revive, these banks are much better placed due to the size and skill set to lend to such sectors. Key Points
Economic TimesIn next couple of days, opportunities may show up in private banks: Rohit Srivastava
Rohit Srivastava identifies FMCG and private banks as the weakest sectors. Short-term bounce back seen in HDFC Bank and ICICI Bank. Nifty and Bank Nifty may have experienced a false breakout. Drop in volumes and critical support levels to watch. PSU stocks show high RSI and potential shorting opportunities in oil and power segments. Key Points
Economic TimesShould you buy Zomato, Policybazaar at current prices?
PSU companies in the power, defence, and railways sectors have the potential to perform well. The government's focus on infrastructure development and increased accountability in PSU companies can lead to higher order intake. Mining companies could see better performance due to government support. As for Zomato and PB Fintech, investor exits have reduced the stock overhang, and the companies' fundamentals have shown improvement. Key Points
Economic TimesGetting ready for another round of re-rating ? 6 defence stocks with “buy” recos with upside potential of
As other sectors dominated by PSU companies come into limelight, defence stocks which ignited the re-rating of PSU stocks have moved into consolidation mode for some time. The question is whether the business is in consolidation mode or not, the answer is tilting toward no. It appears the underlying developments in the sector continue to be going at the same pace or rather even more. Allowing 100 % FDI in space related industries, is probably an indication that focus on defence and related sectors continues. As things are shaping up, it appears the exports would also become a focus area. Key Points
Economic TimesTime for long-term investors to be contrarian? These bank stocks can give over 18% returns
After a phase of correction, there have been signs of some respite both in private and PSU banking space. In the case of the private sector, except HDFC bank which is still quoting close to its recent lows, others have been able to start their upward journey once again. In the case of PSU banks, in the last two days of volatility movement, they have been the ones which have been able to recover faster indicating continued interest in the space. Now this is again a risker trade but for traders, it is time to keep a watch on private banks as they might see a bounce back when FPI’s turn net buyers. Also this would mean that Bank Nifty which has underperformed may make a strong comeback. Yes, there will be higher volatility in short term, but if induced by volatility if one is taking any sell decision in the private banking space, one should remember that the banks in question have created wealth in the long term and even the best of the wealth creators go through a phase of consolidation due to factors like over ownership and what might appear to be a phase of under performance. Key Points
Economic Times
Taking risk & understanding risks are two different things; 13 PSU banks, 7 with upside potential of up to
In the last two weeks, there has been a clear divergence in the performance of the banking space. While private sector banks were under pressure, the PSU banks have either been able to keep their head above water or even moved upward. The question is it a rotational trade, where the money stays in banking but moves from private sector to public sector banks or this is due to the fact that PSU banks have actually cleaned up their act and they are set for a long term re-rating. This question becomes important because PSU banks have seen a run up in their stock prices, so should one buy at these levels or not is the open question whose answer even the best of the name on the street are looking for and the fact is it is not easy to come. Key Points
Economic TimesLooking to invest in PSUs ? Have the right mix of expectations as the risk rewards equation is very differ
If one looks at the last three months of the stock market moves, a new industrial house appears to be born and has caught the fancy of the street. Yes, we are talking about PSU as a set of companies. It is not owned by one individual but by the government of India so there is an element of the largest shareholder being one entity and that is why it may be called a new industrial house. Stocks which have been listed for years and till a year back were available at dividend yield of 6 % and no one was ready to look at them. They have suddenly caught the fancy. Key Points
Economic TimesPSUs vs private banks: Which side will bulls lean after Q4 show?
Indian public sector banks (PSBs) have seen a significant fall in their stocks so far this year as compared to private banks, which have remained resilient amid the ongoing banking crisis. On a year-to-date basis, Nifty PSU Bank index slumped down 7%, however, Nifty Private Bank managed to limit losses, with its index falling just 2% this year. Rising interest rates and the recent Adani-Hindenburg scandal are the main reasons for PSBs' underperformance, as per V K Vijayakumar of Geojit Financial Services. Key Points
Economic TimesAfter Zomato, Gland Pharma, what could be the next turnaround story? Rahul Shah answers
In PSU bank space, Canara Bank reported stronger numbers. That should do well. From the Covid lows, the stock has already done two-and-a-half, three times. The next is Bank of Baroda. In the large names beyond SBI, these two should do well. Thirdly, Jammu & Kashmir Bank stock was a doubler in a year, year-and-a-half, similar to most of the PSU names. Key Points
Economic TimesRavi Dharamshi on how to approach PSU stocks and why he dumped IT
Ravi Dharamshi says: “IT companies have old legacy business, which is rolling off; and then there is this new business, which is digitisation, that is picking up. But the one that is rolling off is rolling off faster than the one that is growing. So at an aggregate level, these companies are not able to grow beyond 8, 10%, some gave guidance of 1 to 3%.” Key Points
Economic Times
Indian Stock Market at record highs. Sectors and stocks that experts are betting on
Stock Market today- Indian Stock Market gained and indices hit record highs for second straight day. Analysts remain positive of domestic focused stocks. PSU banks and PSU stocks in power, energy, defence, cap goods, NBFCs, as- well-as sectors as real estate and Cement are where experts see value. Key Points
mintETMarkets Smart Talk: IT, infra, metal and PSU banks will create wealth for next 3-5 years: Rishi Kohli
Rishi Kohli, Managing Partner & CIO – Hedge Fund Strategies at InCred Alternative Investments Pvt Ltd., believes that banking and IT sectors will continue to offer opportunities to buy on dips due to volatility. He is most bullish on the infra and metals sectors for the next 3-5 years, and predicts that PSU banks will outperform private banks. Key Points
Economic TimesBull run in India state-owned firms’ shares faces earnings risk
Companies in the BSE PSU Index beat analysts expectations by a mere 1% in the three months ended December, the slowest pace in six quarters, according to data compiled by Bloomberg. Thats not enough to justify a rally that sent the gauge to a fresh record on Thursday, and has more more than doubled the measures market value to $750 billion in the past year. Key Points
Economic TimesExpect some consolidation over the first quarter of 2024: Karthik Kumar
Karthik Kumar says: “My fund has a good mix of PSU banks, private banks, and even non-banking players as well. PSU banks have had a good rally for the year so far. So, to that extent, the valuation differential has narrowed and now it comes down to selecting stocks on a case-by-case basis rather than looking at it as a group, as a whole.” Key Points
Economic Times3 midcap banks with ‘strong buy’ and ‘buy’ recos have up to 49% upside potential
It is now three quarters in a row that numbers from banks have shown an improvement. Quite a few of the mid-sized bank number’s were better than what the street had estimated. After facing many headwinds, finally PSU banking space is appearing to be at a stage where all their efforts may start yielding sustained results for the bottomline and shareholders. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . Key Points
Economic Times
Sebi deadline looms large over Rs 7 lakh crore mega rally in PSU bank stocks
PSU bank stocks face Sebi deadline for public shareholding. Compliance by some banks is needed. Analysts are optimistic about growth, profitability in PSU sector, despite challenges. Valuations remain attractive for investors seeking value opportunities in the market. Key Points
Economic TimesMissed? Chance to catch another PSU bank bus beckons
Index returns by 12-stock Nifty PSU Bank is to the tune of 32% over a 1-year period which is higher than 11.36% returns delivered by Nifty Bank and 19.57% by broader Nifty50. Key Points
Economic TimesHemang Jani on 3 Adani group stocks that could be great election plays
Hemang Jani says there is no need to react in a knee-jerk manner. The correction is providing a great opportunity. advises The market correction presents opportunity for balanced investment in largecaps, midcaps, and smallcaps. Adani, Ambuja, ACC, IDFC First, PSU banks, BEML, Max Health, Apollo Hospitals, Lemon Tree, Indian Hotels are good buys. Key Points
Economic TimesIt may take RBI few more months to start cutting rate: Roopali Prabhu of Sanctum Wealth
Roopali Prabhu, CIO and Head of Products and Solutions at Sanctum Wealth, said that it may take a few more months for the RBI to start cutting the rate. She also expects global cues to be a factor in the timing of the rate cut. Key Points
mintNifty PSU Bank index near make-or-break zone. Mehul Kothari tells you what to do
The Nifty PSU Bank index is approaching a make-or-break zone near its all-time high resistance of 5375. If there is a breakout above this level, it could lead to a fresh rally in the index and PSU stocks. However, failing to do so in the coming weeks may result in profit booking or consolidation. The Nifty Bank index has historically performed well in October and could outperform the benchmark indices. Traders should watch out for levels around 44000-43600 as a strong base for the short term. Key Points
Economic Times
PSU bank stocks ride past private sector peers in 2024, but how long will good days last?
Private banks lost to PSBs in 2024 as the latter gave double-digit returns. HDFC Bank saw a correction in share prices, FIIs sold financial stocks, and Goldman Sachs issued a “sell” call on YES Bank. PSU banks rallied, but caution is advised in the sector. Key Points
Economic TimesSamvat 2080 kickstarts on a high note for Dalal Street! Five factors that drove markets higher
The 50-stock Nifty settled above the 19500-mark at 19525.55 points, up 100.20 points or 0.5% from the previous session. The 30-stock Sensex gained about 355 points or 0.5% to settle at 65259.45 points. While all the sectoral indices ended in the green on the BSE, those topping the list were smallcaps and indices representing PSU companies. Key Points
Economic TimesStock picks: Hindustan Aeronautics, NTPC - two PSU stocks that can give up to 22% upside; check details
The benchmark BSE Sensex has risen over 10% in the last six months and around 7.6% year-to-date (YTD). Meanwhile, PSU stocks, or shares of public sector enterprises, have seen a decent upward trend backed by strong fundamentals. Key Points
mintAB Capital & Castrol India are Nagaraj Shetti’s top picks of the day. Here’s why
Nagaraj Shetti recommends AB Capital and Castrol India as top picks. AB Capital has a positive chart pattern and a target of Rs 196-197. Castrol India is in an uptrend with a target of Rs 220-222. Both stocks have stop losses in place. Key Points
Economic TimesLIC shares jump 9% to cross Rs 1,000-mark for first time
shares of Life Insurance Corporation of India (LIC) have jumped over 10% in the last week and 66% in the last 3 months. With its market capitalisation well above the Rs 6 lakh crore mark, the stock is India's most valued PSU by beating SBI. The latest round of buying the heavyweight counter comes after brokerages upgraded the counter with buy calls. Key Points
Economic Times
Tata Steel, Hindalco and Vedanta could be good contra bets. Sandip Sabharwal explains why
Sandip Sabharwal says: “Among the largecaps, I would say that something like Tata Steel could possibly do well, like the iron ore story is also looking decent. Hindalco has already done very well, so there is a possibility Vedanta could come back. The only spanner in the works there is the huge debt of the parent and what happens to that.” Key Points
Economic TimesLook to buy TVS Motors; ICICI Bank to lead bank pack for next 2 years: Dilip Bhat
Banking is expected to take leadership in the stock market, with ICICI Bank leading the way, according to market expert Dilip Bhat. His prediction is based on ICICI Bank's recent result which confirmed that banking shares will be over-owned by FIIs. Bhat expects the bank to dominate over the next one-to-two years with a good amount of steam still to come. As for other stocks, RVNL, RITES, and Nestle are looking impressive. Key Points
Economic TimesSkepticism on stock price vs tailwinds of policy push: 4 defence sector stocks with upside potential of up
In the last four years of bull run, among the PSU space, defence was the first sector to see a re-rating, infact it was the sector which led back the resurgence of the PSU space which was then followed by railways and then NBFCs which are lending to particular sectors. Now the fact that the defence stocks have run up sharply and sitting with gains, questions are bound to come on whether they have priced all the positives or not. A part of the answers lies in looking at how the stock behaved in recent times and whether the macro operating picture of the sector has changed or not. On the price front, in the corrective move of March, after initial correction due to profit booking, some of the defence stocks have once again moved upward and are quoting close to all time high, indicating demand for the paper from this sector. On the fundamental front, the operating matrix is better and probably it is one of the sectors where the continuation in policy making will have the biggest positive impact. Key Points
Economic TimesDividend yield is more than just passive income: 6 PSU stocks with 4.14-5.67% yield
Stock price and dividend yields have an inverse relationship but before this inverse relationship kicks in there is a level of equilibrium. Now this level of equilibrium is a subjective level which moves according to risk free interest rate level which FD provides. But there is another equilibrium level which mathematical equations don't solve. Stocks with reasonable probability of outperforming in a bearish market. The use of the word reasonable brings in the element of subjectivity. Key Points
Economic TimesWant to create a lot of wealth? Look at these 5 PSU gems for next 6 months: Sanjiv Bhasin
Sanjiv Bhasin of IIFL Securities is bullish on Hindustan Copper, HPCL, ONGC, IRCTC, Concor, Century Textiles' foray into real estate, and ITC's future prospects. He advises caution in PSU banks and railway stocks, while emphasizing the potential in the banking sector and the need for quality construction in real estate. Key Points
Economic Times
Do SIPs in HDFC, Asian Paints and reap reward in next one year; up ante in metal/OMC space: Sanjiv Bhasin
Sanjiv Bhasin, Director of IIFL Securities, advises investing in PSUs, OMCs, insurance companies, and largecaps like Reliance and HDFC Bank. He also suggests considering stocks like Vedanta, Hindustan Copper, Devyani, HDFC Life, and Asian Paints for potential returns. Bhasin says: We remain in a bull market but fundamentally and technically, we have reached a peak from where we can see some consolidation/correction. ' Key Points
Economic TimesInternal re-rating? 7 stocks from financial service sector with upside potential of up to 26%
In the correction that markets saw in the last four trading sessions, the financial sector stocks, right from banks to other players also declined. But if one looks at the magnitude and the internal breadth of the sector it was much better as compared to a month back when the market correction was started by HDFC bank. There was a bit of profit booking in the PSU bank space, but once again after a small corrective move, things were back with a strong intraday recovery. The way things are panning out in the industry with regulatory tightening taking place, there is very likely that we might see a divergence in performance of different segments of this sector which has the highest correlation with the GDP growth. Better balance sheets and strong franchise are likely to be the differentiating factors. The factor which is largely technical in nature is the shareholding patterns that will also impact the performance of the stocks from this sector. Key Points
Economic TimesBusiness and valuation tailwinds to help in outperformance? 5 Indian pharma stocks with upside potential o
Just before the whole market was consumed by the PSU rally, one sector that came into the limelight after many years of underperformance was the Indian pharma companies, yes they are very different in every sense from MNC pharma. During the PSU rally, these pharma stocks have been consolidating, however, in the last few days, some of them have once again started reacting to positive developments in the individual company indicating that there is money on the sideline that is ready to come into these stocks. Sectors like pharma which have seen a very long phase of business remodelling and valuation readjustment need to be brought back on the watch list. It might be too early to call, but if a re-rating gets momentum once again then they might be better candidates for volatile markets. Key Points
Economic TimesPSUs lose Rs 4 lakh crore in 2 sessions, may fall more
The Nifty PSE (Public Sector Enterprises) index plummeted almost 4% on Monday, its highest single-day decline since January 23, when the index fell 4.3%. The index dropped 2.7% on Friday. Key Points
Economic TimesTime to look at them without the bias of private or PSU: These 9 bank stocks can give over 18% returns
There are phases in the market when banking and IT stocks tend to move in opposite directions. But this time, it is the banking space which itself is witnessing contra moves . The private banking space is under pressure and PSU banks are doing well. Now this is again a risker trade but for traders, it is time to keep a watch on private banks as they might see a bounce back when FPI’s turn net buyers. Also this would mean that bank nifty which has underperformed may make a strong comeback. Before taking any sell decision in the private banking space, one should remember that the banks in question have created wealth in the long term and even the best of the wealth creators go through a phase of consolidation and what might appear to be a phase of under performance. Key Points
Economic Times
Should you get tempted by this rally in smaller PSU names or stay away? Devang Mehta answers
Ideally, yes, it is a good time for this type of a company to come into the market. The market size is expanding. The size of the opportunity is huge. Probably, yes, market can digest a bit of more passenger vehicle companies. Maruti has been sort of losing market share to the Hyundais and the Kias and the Hondas of the world a bit, but still it is a large company. Key Points
Economic TimesPSUs basket was the darling of 2023. Will it be a repeat in 2024? A Balasubramanian answers
The finance minister's brevity in the announcement reflects the clarity in India's vision statement going forward. The confidence in the finance minister is backed by the success of government programmes, rising per capita income, and emphasis on infrastructure investment. The PSU sector will benefit from the efficiency of public sector companies, their business potential, re-rating, investments in ROI and technology, and their support to the government. The divestment target of Rs 50,000 crore indicates further opportunities for the PSU space. Key Points
Economic TimesAman Chowhan says market volatility due to profit booking; continues to like private banks
Aman Chowhan of continues to like private banks and has added non-fund-based financials like wealth management companies to the portfolio. The recent correction in the market is seen as profit booking after strong gains in the past months. Chowhan believes that the correction is more of a technical than a fundamental reason. In terms of sector allocation, the portfolio has increased exposure to non-funded financials and remains selective on large PSU banks. The fund manager is confident that FIIs will continue to invest in India due to the country's growth potential and lack of other investment opportunities. Key Points
Economic TimesSensex ends over 1,600 points lower, Nifty down over 2%; HDFC Bank tumbles 8%
The S&P BSE Sensex ended 1,628.02 points lower at 71,500.76, while the NSE Nifty50 plunged 460.35 points to settle at 21,571.95. Key Points
India TodayPankaj Pandey on his top 3 midcap and smallcap picks for 2024
Pankaj Pandey says: “Power as a space is looking quite good for the next five-seven year perspective and our sense is that the government focus will come back once the elections are out. So a lot of triggers are in placer for this sector to keep doing well. NTPC has already achieved a target price post result we will look at reviewing our target prices but NTPC remains top pick.” Key Points
Economic Times
Is the one time re-rating in PSU, defence, railways, banks over? Madhusudan Kela explains
“PSU stocks market cap have gone up a little more than 3x in three years. But there are individual companies, within this basket, of course, that have given 500, 800, 1000%, 1500%, 2000% returns. PSUs are clearly the leader of the market. I still feel that, PSU banks are quite compelling. I do not think they have peaked out.” Key Points
Economic TimesTata Motors among top 3 trading ideas for next week from Kunal Shah
Despite unfavourable global news, the bulls have taken full control of the market. Notably, this buying surge came from Domestic Institutional Investors (DIIs), especially in the cash market, as Foreign Institutional Investors (FIIs) were net sellers. Key Points
Economic TimesPSU bank stocks new darlings of Dalal Street, but how long will they keep this title?
FY23 was the best ever for Indian public sector banks, posting impressive earnings and stock performance, with the banking sector gaining favour for adapting to the digital age, according to market expert Swapnil Shah. The strong gains have seen the Nifty PSU Bank index rise by 65% over the last year, outperforming the Nifty Private Bank index. The public sector banks have a lot of potential for a further upside, with many analysts suggesting Bank of Baroda and State Bank of India as stock picks for FY24. Multibaggers include State Bank of India, Punjab & Sind Bank, and Bank of Maharashtra. Key Points
Economic TimesBanking funds top charts, outperform other sectoral plans
Among thematic funds, PSU funds returned 24.7% and consumption-oriented schemes clocked returns of 15.8% during the period. Key Points
Financialexpress