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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] Questioning whether Prime Minister Narendra Modi can operate effectively in a coalition government in his third term, Chris Wood of global brokerage firm Jefferies has shaved weightage of PSU stocks in his long-only India portfolio. The weightings in ICICI Bank, State Bank of India (SBI), REC and Coal India will be reduced by one percentage point each, while an investment in PolicyBazaar will be introduced with a 4% weighting, Wood wrote in his GREED & fear newsletter. As for the Asia ex-Japan long-only portfolio, the investment in JSW Energy will be increased by one percentage point by shaving the investment in SBI. Wood said there will be a temptation for investors to tilt portfolio more towards consumption plays, relative to investment plays, on the view that the new government will focus more on populist measures whereas a feature of the past 10 years has been a fiscal deficit driven by spending on physical infrastructure rather t...

[hfe_template id='11223'] [ad_1] India’s top money managers, overseeing nearly $120 billion of equity assets, are now favoring shares of large firms with strong fundamentals as this week’s election upset dims the appeal of past winners with sky-high valuations. Stock pickers at ICICI Prudential Asset Management Co. and HDFC Asset Management Co. are turning wary of small-caps and stocks that look overheated, such as industrials, defense and state-run companies. Nippon Life India Asset Management Ltd. is leaning toward larger companies that are trading at attractive valuations. It’s been a turbulent week for Indian equities. After an initial surge Monday on the back of exit polls signaling a sweeping majority for Prime Minister Narendra Modi, markets crashed a day later erasing almost $400 billion of value as his party lost its majority in parliament. While shares have recovered most of their losses after Modi won backing from key allies to form a government, stocks that a...

[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...