During a no-confidence motion debate in the Parliament, Prime Minister Narendra Modi took a dig at the opposition parties, who criticised his government for not handling the PSU companies in an appropriate manner.
In response, PM Modi said that despite superficial criticism of his government on PSU companies, PSUs are delivering robust numbers and are competing with their peers in style.
“Here’s a guru mantra for those who follow the stock markets: Place your bets in those PSUs which they (the opposition) abuse. Your money will surely grow,” he said in Hindi.
PM Modi’s light-hearted note on the floor of Lok Sabha set the shares of PSU companies racing, over the past month. It might have started as a casual remark, but investors seem to have taken his words seriously.
The share prices of Many PSU Companies witnessed a massive rally amid buying interest and this was not confined to a specific group or sector.
A majority of PSU Stocks witnessed a surge of anywhere between 10% to 85% in nearly a month’s time, after the remark. MMTC Ltd (up 84.27%), Gujarat Mineral Development Corporation (up 55.22%), Shipping Corporation of India (up 45.90%), State Trading Corporation of India (up 47.30%), BHEL (up 41.61%), Jammu and Kashmir Bank (up 40.36%), Central Bank of India (up 28.93%), NMDC (up 26.82%), Punjab & Sind Bank (up 26.54%) and BEML (up 22.12%) were some of the top gainers.
A few other stocks that were in the green include UCO Bank, Hindustan Copper, Indian Overseas Bank and MTNL. In fact, the share of PSUs in the country’s overall market capitalization is at the highest in four years, according to reports.
Written by Simran Bafna
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