CNBC-TV18 Edge: PSUs market cap surpasses ₹50 lakh crore
An analysis by CNBC-TV18 shows that state-owned firms, particularly those in the public sector undertakings (PSUs) basket, have taken the lead in the current bull market. The combined market capitalisation of these state-owned firms has exceeded ₹50 lakh crore for the first time. Notably, the strong performance of these firms is widespread, with 23 PSUs experiencing a more than two-fold increase in their stock prices in 2023.
With the public sector undertakings (PSUs) basket leading the current bull run, the aggregate market capitalisation of the state-owned firms scaled past ₹50 lakh crore for the first time ever.
Interestingly, the outperformance of state-owned firms is evident across the board. As a result, as many as 23 PSUs saw their stock prices rising over two-fold in 2023.
The list comprises names like REC, Power Finance Corp, Mazagon Dock Shipbuilders, Rail Vikas Nigam Ltd, IRFC, BHEL, Hindustan Aeronautics and many others.
While stocks of REC and Power Finance Corp have soared three-fold in 2023 so far, others like Engineers India, Hindustan Aeronautics, BHEL, IRFC, Cochin Shipyard, Rail Vikas Nigam and IRCON International have also seen their stock prices swelling anywhere between 100% and 190% gains between January and now.
| Name | YTD gain (%) |
| REC LTD | 244 |
| POWER FINANCE CORPORATION | 235 |
| IRCON INTERNATIONAL | 188 |
| MAZAGON DOCK SHIPBUILDERS | 167 |
| RAIL VIKAS NIGAM | 150 |
| SJVN LTD | 147 |
| COCHIN SHIPYARD | 140 |
| INDIAN RAILWAY FINANCE CORP | 133 |
| RAILTEL CORP OF INDIA LTD | 125 |
| BHARAT HEAVY ELECTRICALS | 125 |
The outperformance, which started with bank socks, has spread across various sectors, including railway infrastructure, defense, power, fertiliser, metals, and oil & gas.
While the largest lender State Bank of India continues to command the highest market valuation among the PSUs, insurance behemoth comes close with ₹4.7 lakh crore. The two together along with NTPC and ONGC account about a third of PSUs overall market cap.
| Top PSUs by Mcap | Mcap (Rs lakh crore) |
| SBI | 5.43 |
| LIC | 4.72 |
| NTPC | 2.73 |
| ONGC | 2.54 |
| COAL INDIA | 2.17 |
| POWER GRID CORP. | 2.09 |
| HINDUSTAN AERONAUTICS | 1.82 |
| IOCL | 1.68 |
Over the last one-and-a-half years, the combined market valuation of public sector companies surged by ₹23.2 lakh crore to ₹50 lakh crore, with seven firms — SBI, NTPC, Hindustan Aeronautics, Coal India, Power Finance Corporation, ONGC and REC — contributing over a third to the absolute gains.
The aggregate market cap of all listed firms on the BSE surged 48.5% to ₹349 lakh crore during the same period.
However, apart from increase in stock prices, the overall market capitalisation of the country also got a boost as more and more companied debuted to the market.
From PSU space alone, names like Indian Renewable Energy Development Agency (IREDA), Life Insurance Corporation, SBI Cards, IRFC, Mazagon Dock Shipbuilders, Railtel Corporation of India went public over the last four years.
While the Nifty PSE Index has rallied 67% so far in 2023, the Nifty50 is up by 16% during the same period.
(Edited by : Anand Singha)
First Published: Dec 6, 2023 7:36 PM IST
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