PSU stock investors wealthier by Rs 44k cr in 15 days

PSU stock investors wealthier by Rs 44k cr in 15 days

Total market capitalisation of the 48 listed PSUs on the PSU index of the BSE soared by Rs 44,346 crore to Rs 18.20 lakh crore in the 15 trading sessions so far this year.

The PSU counters have been on upward spiral since early November after the Government announced that all profitable listed CPSUs would dilute a minimum 10 per cent of their holding to the public and all profitable unlisted CPSUs would be listed.
After this, the market capitalisation of the PSUs jumped by a whooping Rs 2.69 lakh crore in just two months.

Marketmen said investors are hoping that the government would dole out dividend and bonus shares prior to the selloff and are flocking these counters for some swift gains.
"Traders are willing to invest and pile up on these stocks. As the supply is limited, demand is increasing in the
se counters," Ashika Stock Brokers research head Paras Bothra said.
The government has so far announced follow-on public offers in NTPC, NMDC, Engineers India and Rural Electrification Corporation.

"The CPSUs with government holding of more than 90 per cent are seeing sharp rally even though fundamentally, there is nothing comfortable about these PSU stocks as the percentage of their stocks traded on the exchanges is very less," Bothra added.
While the BSE PSU Index jumped by over two per cent in 15 trading sessions, the Sensex lost 3.46 per cent.

Among the gainers, Hindustan Copper more than doubled to Rs 606.95, STC by 41 per cent at Rs 526.05.

Among the bluechip CPSUs in line for stake sale, NMDC gained 26 per cent and MMTC nearly two per cent. However, NTPC dropped over five per cent during the period.
Besides, EIL gained 41 per cent to Rs 2,182.80 and Dredging Corporation of India rose 33 per cent to Rs 701.90.

While the Government is planning to mop up Rs 11,000 crore through the NTPC issue, from NMDC it is aiming an estimated Rs 14,000 crore, Rs 1,000 crore from EIL and over Rs 3,000 crore from the REC issue.

The listed CPSUs that are making profits and have public holding of below 10 per cent include trading firm MMTC, mining major NMDC, Neyveli Lignite Corp, Engineers India, State Trading Corporation, Rashtriya Chemicals, National Fertilisers and Andrew Yule.