PSUs more or less unscathed by market meltdown

The state-owned entities have only lost Rs 19,350 crore against Rs 8.1 lakh crore by all listed companies

GN Bureau | November 23, 2016


#PSU   #meltdown   #state-owned  

Public sector units (PSUs) have suffered less compared to others amid the current market meltdown, limiting notional loss in market value for exchequer, reported Business Standard.

The average decline in the PSU pack has been only 1.6% even as benchmark indices fell over seven per cent since November 8, the day when the Rs 500 and Rs 1,000 currency notes were scrapped.

In terms of market value, the state-owned entities have only lost Rs 19,350 crore against Rs 8.1 lakh crore by all listed companies.

This outperformance of PSUs was largely on account of strong performance by public sector banks (PSBs), which have largely registered gains since the move to ban certain notes, the media report said.

 “The Indian banking sector, especially PSBs, is reeling under bad debts and needs recapitalisation. Diverting funds from note-ban windfall to PSBs’ recapitalisation can improve the health of PSBs and have positive spillovers for the rest of the economy. Further, progress towards a cashless economy will provide a boost for savings in financial assets, which is structurally positive for intermediaries like banks,” Ravi Muthukrishnan, co-head of research at ICICI Securities, was quoted as saying.
 

Oil and power PSUs such as ONGC, Oil India and Petronet LNG have done well during the period.

The media report said that this outperformance of public-sector stocks has also provided some relief to the government, which has lined up several divestment issues in the next four months to meet its ambitious disinvestment target of Rs 56,500 crore for 2016-17. Of this, the government has so far garnered Rs 21,400 crore, data from Department of Investment and Public Asset Management showed.

Comments

 

Other News

Trump’s victory: India hopes to turn a new leaf in relations with US

When Europe and West Asia in particular are deep in fear about Donald Trump because he as the 47th US president is expected to bring a significant shift in the geopolitics of the world with his policies and strategies, India is looking forward with optimism to work closely with him and infuse more dynamism

Justice Khanna sworn in as Chief Justice of India

Justice Sanjiv Khanna was sworn in as the Chief Justice of the Supreme Court of India, succeeding Justice DY Chandrachud. The 51st CJI will have a term of about six months. "At a ceremony held today (November 11, 2024) at 1000 hrs in the Ganatantra Mandap, Rashtrapati Bhavan,

`BMC health budget doubled but PHC vacancies rose thrice`

While there has been a rise of 98% in BMC’s health budget in the last seven years, from Rs 3,637 crore in 2018-19 to Rs 7,191 crore in 2024-25, vacancies in BMC Primary Healthcare Facilities (dispensaries) have increased by three times in the last decade. Praja Foundation’s &lsqu

India’s export ambitions: where do we go from here?

India’s Trade Scenario India’s trade has increased from 17% of GDP during 1991 to 46% of GDP during 20231 owing to the liberalization reforms which led to the gradual easing of restrictions from a highly protected and controlled economy; fostering competition,

PM Modi congratulates "my friend" Trump

As the results of the tightly contested US Presidential elections became clear Wednesday afternoon (India time), prime minister Narendra Modi congratulated Donald Trump on the victory. "Heartiest congratulations my friend @realDonaldTrump on your historic election victory," Modi sa

Cabinet approves scheme for financial support to meritorious students

The union cabinet, chaired by prime minister Narendra Modi, on Wednesday approved PM Vidyalaxmi, a new central sector scheme that seeks to provide financial support to meritorious students so that financial constraints do not prevent anyone from pursuing higher studies. PM Vidyalaxmi is a k

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter