More than half of the public sector companies (PSUs) in the BSE PSU index have posted positive returns in the current calendar year till September 19. A high was also seen in the BSE PSU index, which gained almost was 15% since the beginning of the year. (YTD). On the other hand, the benchmark ESB Sensex index increased by 1.52% during the same period. Market watcher Deepak Kumar Lalla, MD and CEO, SBICAP Securities, in an interaction with Business Today, said that a few positive factors are supporting various PSU sectors, including banking, securities and energy. With a gain of 139%, securities firm Bharat Dynamics has emerged as the top gainer in the BSE PSU index in 2022 so far. It was followed by Hindustan Aeronautics (up 105%), Bank of Baroda (up 72%), Mazagon Dock Shipbuilders (up 64%), MRPL (up 61%) and Bharat Electronics (up 64%). 58% increase). Current news

Sharing his views on the defense sector, Lalla said, “The performance of the defense industry is driven by the increased spending by the Indian government on the sector due to high geopolitical tensions, the basis of which is a strong policy. revenue visibility”. He further added that low cost and India's plan to increase defense infrastructure sourced from domestic industry and reliance on external partners make sense.

The data also shows that other public sector banks including Indian Bank, State Bank of India, Canara Bank and Punjab National Bank have grown between 8% and 47% annually. Commenting on the performance of PSU banks, Lalla added that PSU banks reported good earnings in the June quarter, with many reports improving asset quality, health insurance positive and strong credit growth prospects.

“Traffic expects most PSU banks to achieve sustainable growth in FY23 and FY24. Earlier, UAPs like Bank of Baroda, Indian Bank and Canara Bank were ineligible for many years due to insufficient capital, high number of defaulters and uncertainty around mergers. and availability. availability," he said.

Power generation companies like NTPC (up 38% YTD) and NHPC up 25% YTD) also outperformed the BSE PSU index. The market expert explained that this exception is due to financial expectations of NTPC's renewable energy portfolio and completion of major investment in NHPC, thereby leading to increased production capacity of hydroelectric power during FY23E and FY24E.
Source: BusinessToday