Investors rush to buy PSU stocks after PM Narendra Modi’s guru mantra
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Indian Overseas Bank was the top gainer at 14 per cent, while Central Bank of India and Uco Bank gained five to seven per cent. LIC shares gained about six percent. The net profit of the company has increased by about 14 times. Modi had said in Parliament that the opposition is saying that LIC is ruined. The hard earned money of the poor was looted. But LIC is going from strength to strength. Giving Guru Mantra to the investors, he said that invest in the government companies which are being made fun of by the opposition.
60 percent return
Kranti Bathini, Equity Strategy, WealthMills Securities, said that the PM himself expressed confidence in the government companies in the Parliament. Perhaps this is the first time the PM has assured investors that state-run companies are doing well. Finance Minister Nirmala Sitharaman also said in Parliament that public sector banks are now working in a professional manner without political interference. In the last 12 months, Nifty PSU Bank Index has given a return of more than 60% while Nifty Bank has given a return of 15%.
The average net profit of public sector banks has jumped 107 percent in the June quarter. Punjab National Bank’s (PNB) net profit jumped 370% in the first quarter, while State Bank of India’s (SBI) net profit jumped 150%. Also, in 2022 and 2023, many stocks of defense and railway companies have given multibagger returns. The government has increased capital expenditure due to which these companies have many orders.
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