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Business News/ Markets / Stock Markets/  Cochin Shipyard, NBCC, BEL, NTPC among other PSU stocks rally up to 8%; Nifty CPSE jumps 4%
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Cochin Shipyard, NBCC, BEL, NTPC among other PSU stocks rally up to 8%; Nifty CPSE jumps 4%

Cochin Shipyard and NBCC India shares rallied more than 8% each, followed by NLC India, BEL and NHPC share price gaining over 6% each.

NTPC, SJVN, Coal India, ONGC, OIL India and Power Corporation of India shares were up in the range of 4-2%.Premium
NTPC, SJVN, Coal India, ONGC, OIL India and Power Corporation of India shares were up in the range of 4-2%.

Cochin Shipyard, NBCC India, Bharat Electronics, NTPC, among other PSU stocks rallied up to 8% on Thursday amid strong buying. The Nifty CPSE index was up 4% with all its constituents trading in the green.

The biggest gainers were Cochin Shipyard and NBCC India shares that rallied more than 8% each, followed by NLC India, BEL and NHPC share price gaining over 6% each.

NTPC, SJVN, Coal India, ONGC, OIL India and Power Corporation of India shares were up in the range of 4-2%.

Also Read: Multibagger NBCC share price climbs over 8% after company bags new orders worth 491 crore

In the banking sector, Nifty PSU Bank index also jumped more than 3% led by Indian Overseas Bank, Union Bank of India, Central Bank of India, SBI, Punjab National Bank, among others surging 3-5%.

PSU stocks gained as investor sentiment improved after clarity over political stability after Lok Sabha election results 2024. The National Democratic Alliance (NDA) leaders pledged support for the alliance to form a government for the third term.

Public sector undertakings (PSUs) were among the biggest beneficiaries of the NDA government in the last 10 years. This was also reflected in the prices of PSU stocks as some gave multibagger returns.

Also Read: KCP, Heritage Foods extend rally for second straight day as TDP gains power in Andhra Pradesh

However, with BJP failing short of full majority in the lower house of the parliament, the stock market experienced significant volatility and PSU stocks got hammered after the announcement of election results 2024.

“The sectors most affected by this uncertainty were Public Sector Undertakings (PSUs), defense, energy, and railways. These industries saw the most significant impact as investors recalibrated their expectations and adjusted their portfolios in response to the new political landscape," said Ravi Singh, SVP - Retail Research Religare Broking Ltd.

Also Read: Top Stock Recommendations: Osho Krishan of Angel One suggests buying two stocks today

Analysts believe the expensive stocks among the PSU pack, Defence plays and Renewable Energy names could see some under-performance in the near-term till the policy momentum turns clear. 

Meanwhile, the Indian share market rebounded after some clarity over the government formation amid hopes of policy continuity.

The Sensex gained 513.38 points, or 0.69%, to 74,895.62, while the Nifty was up 156.20 points, or 0.69%, at 22,776.55.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 06 Jun 2024, 09:50 AM IST
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