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[hfe_template id='11223'] [ad_1] Investors who were quick to dismiss high-flying PSU stocks on June 4 when BJP failed to get the absolute majority in the Lok Sabha on its own are now forced to eat the humble pie. After crashing 16% on result day, PSU stocks are once again leading the bull run as if PM Modi actually managed to achieve the ambitious target of '400 paar'. Driven by defence PSU Mazagon Dock Shipbuilders, which has seen a 48% return, the combined market capitalisation of 56 PSU stocks, which are part of the BSE PSU index, has surged by Rs 723,823 crore to Rs 68,03,059 crore in just 10 trading sessions (from June 4 closing till 19 June). Shares of RCF have zoomed 33%, Cochin Shipyard 24.5% while HUDCO and MMTC are up 23% each. Other top gainers include HAL, BEL, and BHEL. The fate of the multibagger bull run in PSU stocks was linked to the BJP's performance in the Lok Sabha elections and was also segmented as "Modi stocks" along with othe...

[hfe_template id='11223'] [ad_1] Notwithstanding skepticism around the future outlook of PSU stocks following a fractured mandate for the Modi government in Lok Sabha elections, the structural story of public sector companies is far from being over, according to analysts. Following a 16% crash on June 4, when election results was announced, in the BSE PSU index, the stocks have been on a recovery path non-stop for the last 6 trading sessions. Initially investors were apprehensive that the premium PSU stocks enjoyed due to BJP's ability to make structural reforms and decisions swiftly will go away as coalition partners may not give PM Modi a free hand over such decisions. But now the focus is now back to fundamentals. Also read | Sensex nearly doubled during Nirmala Sitharaman's first tenure as FM. Next target: 1 lakh! Here are 4 key reasons why investors are not willing to turn their back on PSU stocks: 1) Turnaround in PSU banks The sharp 190% rally seen in Nift...

[hfe_template id='11223'] [ad_1] With Prime Minister Narendra Modi-led BJP failing to secure a simple majority on its own in the Lok Sabha election, global brokerage firm CLSA has tweaked its India portfolio to make it more defensive. It has replaced L&T with HCL Tech in India-focus portfolio. "Recognising these uncertainties, we take out L&T from our India focus portfolio and replace it with HCL Tech. L&T has been in our portfolio since its inception in January 2021 and outperformed by a huge 106.2ppt. ITC remains our preferred staples name," CLSA said. The brokerage is now clearly overweight banks, commodities, and IT along with insurance and staples. "Our exposure to Modi stocks is limited to ONGC and Reliance as these have rerated by less than 15% in the last six months. We fear de-rating in the expensive discretionary and capex space and prefer the valuation support in private banks," it said. On Modi stocks, it said the rally was led...

[hfe_template id='11223'] [ad_1] Now that the exit polls are giving a clear advantage to the Bharatiya Janata Party (BJP) led NDA faction, Street is expected to see focus turning to sectors including railways, defence, infrastructure and the blue-eyed PSUs. According to the exit polls, the National Democratic Alliance (NDA) is expected to get over 350 seats out of the 542 seats contested during the seven-phase election which spanned over 48 days. One constituency did not go for election as the Surat seat went to BJP unopposed. While exit polls are estimates, the counting of votes will take place on June 4, Tuesday. ETMarkets analysed sectors that may see traction when markets resume trading on Monday. PSU stocks across sectors are expected to remain in focus in the run-up to the result date and even after it. Counters in defence, railway, public sector banks (PSBs) may see a sharp upturn. Ever since voting for the Lok Sabha election began, the market capitalisation of BS...

[hfe_template id='11223'] [ad_1] The rags-to-riches story of PSU banks has delivered multibagger returns going up to 472% to investors in Prime Minister Narendra Modi's second term. Ten out of 12 PSU bank stocks have more than doubled investor wealth during the period. According to data from Ace Equity, Indian Overseas Bank was the top performer among PSU banks, delivering 472% returns during the Modi 2.0 tenure. Bank of Maharashtra and UCO Bank followed, with returns of 325% and 226%, respectively. Additionally, Central Bank of India, State Bank of India (SBI), Indian Bank, Canara Bank, Punjab & Sind Bank, Union Bank of India, and Bank of Baroda provided returns ranging from 106% to 150% over the last five years. However, two PSU bank stocks, Punjab National Bank and Bank of India, managed only 52% and 44% returns, respectively, in the given period. Despite the stellar returns PSU banks have given in the last couple of years, the sector can still outperform thei...

[hfe_template id='11223'] [ad_1] As a forward-looking animal, the stock market has already discounted the probability of Narendra Modi's return as Prime Minister when election results are declared on June 4. Of special interest this election season are Modi stocks which have gained an average of 50% in the last six months. This may be the basket that continues to rally the most if the market celebrates a strong election result for the ruling party on 4 June, say CLSA analysts. What are Modi stocks? Given the sheer impact that the government's policies have had on several sectors, investors have begun to categorise stocks that are direct policy plays into a new basket called Modi stocks.These stocks are seen as being the direct beneficiaries of popularly expected policy measures from Modi 3.0. Many of these stocks are rallying more on perception. Modi stocks are related to capex and infrastructure-linked sectors, PSUs, or stocks of some corporate houses. Also read...