Shares of several public sector undertakings (PSUs), including Cochin Shipyard, IRFC, HUDCO, RVNL, NBCC, REC, and BHEL, are in focus today as investors await the Union Budget 2024 presentation.
Investors are also keenly watching shares of shipbuilding companies like Cochin Shipyard Ltd., Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders. The budget is expected to support military modernization and indigenization efforts, potentially providing a boost to the defense sector.
Fertilizer producers and rail stocks are also under the spotlight. The budget is anticipated to focus on supporting farmers and modernizing the rail system, including the introduction of more Vande Bharat trains. This strategy could drive growth in both the rural and rail sectors.
Several PSU stocks have delivered substantial returns over the past year. Cochin Shipyard Ltd has delivered a 700% return, with the stock closing at ₹2,671.80 on Monday compared to ₹334.15 a year ago. IRFC shares have rallied 485%, HUDCO is up 436%, RVNL has increased by 357%, NBCC India by 347%, and REC by 282%. Other notable performers include Ircon International Ltd, Oil India Ltd, Bharat Heavy Electricals Ltd, and Power Finance Corporation Ltd, which climbed between 200% and 244%.
The government’s higher allocation towards these sectors in the budget will be crucial for sustaining stock performance. With valuations turning less attractive, continued support will be essential for maintaining growth.
In total, 32 PSU shares from sectors including railways, defense, housing, finance, and capital goods have doubled investor money over the past year. This robust performance underscores the strong market sentiment towards these stocks ahead of the budget announcement at 11 am.
