PSU outperformed private sector last week in markets
By siliconindia   |   Wednesday, 22 July 2009, 23:15 IST
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PSU outperformed private sector last week in markets
Bangalore: Shares of public sector companies outperformed private sector firms last week. On BSE, public sector undertaking (PSU) index gave better returns among the dozen other sectoral indices during the week ended July 19. Among the 13 sectoral indices, the PSU index, which includes companies like GAIL, BPCL, HPCL, IOCL and MTNL, gave almost five percent returns in the last week. The PSU index is trading today at 8136.34 points as against 7,851.72 points, a week ago. When markets closed today, the total market capitalization of the PSU stocks was 4,934,647.97 crores. The PSU stocks soars 48.97 points to close the day 0.61 percent higher of yesterday's close of 8,087.39. The stocks touched an intraday high of 8272.48 and a low of 8057.90 points. In all, a total of 1.41 crore PSU shares were traded through the day. Majority of public sector undertakings have established records of steady profitability and performance and several amongst them, such as Bharat Heavy Electricals (BHEL), Coal India (CIL) and National Thermal Power Corporation (NTPC) have attained global standards. BHEL has regularly declared dividends for 20 years now. Its order books are full for the next 10 years. CIL has broken new grounds by acquiring coal mines overseas. It has paid the government a dividend of 1,700 crore. About 41 central public sector enterprises are listed and they account for around 40 percent of the total capitalization of stocks listed on the Bombay Stock Exchange (BSE). Jagannadham Thunuguntla, Equity Head, SMC Capitals said, "The present government, with the clear and aggressive disinvestment policy, has a lot of cushion and headroom in its fiscal policy making. With the aggressive disinvestment policy, the fiscal deficit may not be such a serious threat to the Indian economy, as generally perceived." During the last week, PSU companies that gave positive returns were Canara Bank (1.54 percent), Bank of Baroda (1.66 percent) and ONGC (4.69 percent). Other indices that gave positive returns were Reality (3.91 per cent), Metal (2.06 percent), CD (1.89 percent), Bankex (1.86 per cent) and Auto (1.06 percent).

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