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The market continues to break records, will the rise in government stocks continue?

Sagar Patel

By Sagar Patel

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The market continues to break records, will the rise in government stocks continue?

The stock market has once again broken records and reached new heights. On Tuesday, Sensex crossed 78 thousand points for the first time. On the other hand, Nifty has also crossed 23,700 points. If experts are to be believed, the stock market is experiencing a boom due to the rise in bank stocks. Thanks to this market boom, investors are also making a lot of money. The way the stock market continually hits new highs lets us know if the rise in government stocks will continue in the coming days.

PSU Stock Changes the Game

Government PSU stocks have played an important role in the rise of the Indian stock market. PSU stocks have become wealth generators in the stock market. Some PSU stocks have even given huge returns of up to 800% in less than a year. In such a situation, government actions have become a game changer in the bull market. In the recent elections, the PSU’s stock has gained momentum on hopes of political stability and policy continuity due to the BJP’s victory in the elections and the formation of the NDA coalition government at the Center for the third time.

Will the rise in government actions continue?

If any sector has benefited most from the market boom, it is defence, energy and railways. Many stocks in these sectors are outperforming the broader BSE PSU index. Despite the tremendous rise in these stocks, market experts have maintained a bullish outlook going forward considering their performance and growing demand. That means if you have also invested money in these sectors, your profits will increase even more in the coming days. Market experts believe that due to the new policies of the government, the rise of these stocks will continue in the future as well.

National brokerage firm Antique Stock Broking said in its recent report: “Despite massive rerating, stocks in the energy, defense and railway sectors will continue to attract investors. According to experts, the main drivers are energy shortages, new technologies, T&D and renewable energy, defense exports, indigenization and the growing shift towards the private sector in the railway supply chain.

There may be an increase in these stocks.

Defense stocks have given returns ranging between 46% and 233% so far this year. Talking about the highest returns, HAL and BEL from the defense sector have given the highest returns. Considering its performance, the brokerage has also increased its target price. While the brokerage raised the target price on BEL from Rs 308 to Rs 339, it increased the target price on HAL from Rs 5,462 to Rs 6,145 with a buy rating. Apart from this, the brokerage has also placed a buy call on Mazegon Dock Shipbuilders. BEML shares have also been upgraded from Rs 3,510 to Rs 5,216.

This is the market capitalization of BSE.

The market capitalization of BSE has currently reached Rs 436.69 lakh crore. While the market opened on a positive note on Tuesday, the Sensex closed at 78,053.52 points with a gain of 712.44 points. Nifty also rose by 183.45 points and closed at 23,721.30 points.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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