'Those betting against PSUs will likely be punished in this upswing.'
Among the 30 Sensex companies, Larsen & Toubro, Power Grid, NTPC, State Bank of India, Reliance Industries and HDFC Bank were the biggest laggards. Sun Pharma and Nestle were the only gainers.
The last year has seen public sector undertakings (PSUs) outperforming the Nifty50, albeit by a small degree. But PSU valuations are still, on average, less than half of private sector peers at price-to-equity or PE 8.7x for the Nifty PSU Index versus 20.9x for the Nifty50. There are several reasons for lower valuation.
The government on Tuesday said it has received Rs 4,353 crore as dividend tranches from seven public sector enterprises, including Coal India and PFC. Government has respectively received about Rs 575 crore and Rs 2038 crore from Nuclear Power Corporation of India Ltd and Coal India Ltd as dividend tranches," Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey tweeted. Besides, about Rs 887 crore and Rs 653 crore have been received from Power Finance Corporation (PFC) and Hindustan Aeronautics Ltd as dividend tranches.
Government has approved follow-on public offer of Power Finance Corporation worth Rs. 5,732 crore.
The headline for corporate profit growth has been very encouraging in the July-September quarter (Q2) of 2023-24 (FY24), with the combined net profit of listed companies up by 38 per cent year-on-year. However, the earnings distribution has been very lopsided, with most of the growth coming from public-sector oil-marketing companies (OMCs), banks, non-bank lenders, automobile (auto) companies, and cement producers. By comparison, companies from information technology services, fast-moving consumer goods (FMCG), retail, and consumer durables were disappointed, experiencing a sharp slowdown in net sales growth and a relatively muted increase in reported net profit.
The S&P BSE Sensex and the Nifty50 have hit record highs amid the poll outcome-triggered bull frenzy at the bourses. Most analysts feel that the indices are on course to rise further over the next few months - till the general elections - albeit amid intermittent corrections - largely triggered by global developments. Bharatiya Janata Party's (BJP's) win in the three state elections of Madhya Pradesh (MP), Rajasthan and Chhattisgarh, analysts at Jefferies believe, reinforces the consensus expectations of a Modi win 2024 national elections with a greater likelihood of over 300 seats for the BJP.
The power sector lender is mulling the coupon it would be offered in a falling interest rate scenario.
Stock markets would be largely driven by macroeconomic data, auto sales numbers, FII inflows and global trends this week, analysts said. The US debt ceiling negotiations and institutional flows will also be watched by investors. "This week, market participants will closely monitor institutional flows, as there is a historical observation that when both FIIs and DIIs become net buyers simultaneously, there is a likelihood of some profit-booking in the market," said Santosh Meena, head of research, Swastika Investmart Ltd.
This is a good opportunity for long-term investors to pick quality small and midcap stocks at reasonable valuations.
LIC, EPFO and PSBs are likely to be asked to subscribe to bonds.
The government on Friday conferred Navratna status on public sector giants Bharat Electronics Ltd, Hindustan Aeronautics Ltd and Power Finance Corporation Ltd.
The new telecom policy-2011 is also expected to come out with new norms for mergers and acquisitions, enhancing rural coverage, and spectrum allocation, among other things.
Power Finance Corporation Ltd filed its revised prospectus on Monday with market regulator Securities and Exchange Board of India to come out with its initial public offering.
The government intends to disinvest 5 per cent stake in PFC, while the company would issue fresh shares to the tune of 15 per cent through the follow-on public offer.
State-owned Power Finance Corporation on Tuesday announced its maiden public offer of 10 per cent fresh equity shares along with sale of five per cent government equity in the first quarter of next fiscal
The divestment commission, which is currently in the process of firming up its recommendations on divestment of Power Finance Corporation, has sought borrower-specific details from the power lending agency.
With the Power Ministry seeking Cabinet's nod for Power Finance Corporation's initial public offer, the state-run company has firmed up plans to conduct road hows for attracting investors toward the issue.
But they missed a flurry of chances with the striking line-up of Manvir Singh, Ashique Kuruniyan and Liston Colaco showing little coordination upfront, underlining the lack of firepower in the absence of Roy Krishna and David Williams.
The RBI governor's assurance should give investors enough confidence to start believing in the NBFC sector again, say bankers.
State-run lending agency Power Finance Corp may raise Rs 5,000 crore (Rs 50 billion) through a tax-free bond issue, a move that would result in lowering borrowing costs for the company.
After getting the approval of raising up to Rs 30,000 crore (Rs 300 billion) through issuance of tax-free bonds this financial year, infrastructure finance companies, Housing and Urban Development Corporation (HUDCO) and Power Finance Corporation (PFC), have thrown open their subscriptions under the private placement route.
State-owned Oil and Natural Gas Corporation has been ranked among the top 25 energy firms in the world.
"Till September we have refinanced loans worth Rs 1,500 crore (Rs 15 billion). We will lend another Rs 3,500-4,000 crore (Rs 35-40 billion) to REC and PFC by the end of this fiscal," IIFCL Chief Executive Pradeep Kumar said.
Pune FC staged a comeback 2-1 victory over title chasers East Bengal in an I-League Round 22 encounter at the Balewadi Sports Complex, in Pune on Monday.
Union Road Transport and Highways Minister Nitin Gadkari on Wednesday pitched for formulating a policy for using the Reserve Bank of India's rising foreign exchange reserves for funding road projects, saying the country needs low cost finance for such infrastructure projects. Addressing a virtual event organised by industry body CII, Gadkari further said that the National Highways Authority of India (NHAI) should also have a financial arm like the power ministry's Power Finance Corporation (PFC). "We have a surplus of dollar reserves in the country. I have decided to talk with the RBI Governor, about how we can formulate a policy by which we can use this foreign exchange reserves for development of infrastructure in the country," he said.
Mihir Tanna, Associate Director, S K Patodia & Associates, answers your tax queries.
Budget focuses on boosting investments in infrastructure.
A consulting firm has just released its annual ranking of the biggest oil and gas companies in the world.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
The divergence shows lack of financial depth in the Indian stock markets.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
Known for stable returns, near debt-free status and dividend track record, these 10 PSU stocks are worth buying now.
For first time in 8 yrs, stake sale proceeds could exceed Budget Estimates. ONGC's acquisition of HPCL alone could get the exchequer more than Rs 30,000 crore.
Last year, the government had allowed NHAI, IRFC, Hudco, REC and PFC to issue tax-free bonds.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
Four big transmission projects went under the hammer last month.
The MoUs are signed between the Central Public Sector Enterprises and the administrative ministries/departments.
