FY24 Stock Market Recap: BSE PSU index gains 92%, 37 stocks surge over 100%

This performance is particularly noteworthy given the pressure PSU stocks faced before embarking on their bullish momentum in 2020. The BSE PSU index, a barometer of public sector enterprises’ performance, zoomed from 9,497 points to 18,274 points, translating into a stellar gain of 92.4%. 

The government’s accelerated capex spending, coupled with sector-specific reasons, has helped PSU stocks achieve record gains in FY24. In the recent interim budget (FY24-25), the government raised the capital outlay by 11.1% to ₹11,11,111 crore, equivalent to 3.4% of GDP. 

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Furthermore, the prospect of political stability, especially in light of the anticipated victory of the BJP in the upcoming Lok Sabha elections in May, has emerged as a significant factor in FY24. This expectation has infused bullish sentiment among investors, amplifying projections for sustained capital expenditure (capex) growth.

Moreover, the combination of strong order acquisitions from the private sector coupled with limited liquidity in PSU stocks, largely due to the government’s significant stakeholding, has created a supply-demand gap. This discrepancy has subsequently propelled stock prices upwards.

Further, the government’s aim to limit the fiscal deficit to 5.1% for FY25 has provided additional support to PSU bank shares. Their robust performance in the first three-quarters of FY24 has also boosted their stock values. 

Also Read: FY24 market review: 120 stocks from Nifty 500 gave multibagger returns, 55 in the red; check list of top gainers, losers

In the first nine months of FY24, PSU banks witnessed a significant improvement, with profits surging by 40% to ₹98,358 crore. As a result of this improved profitability, it is anticipated that PSU banks may exceed a dividend payout of ₹15,000 crore in FY24, as reported by PTI, citing sources.

On the other hand, the railway sector exhibited a fabulous performance in FY24, driven by the government’s strong emphasis on its transformation. This focus resulted in substantial order inflows for railway companies, contributing to their robust performance.

The significant increase in power demand has led to a strong performance in the stock prices of companies in the power sector. This includes power generators, distributors, and financing firms, all of which have touched record highs in FY24. 

Also Read: FY24 Market Review: Nifty Midcap and Smallcap surged over 60%; check best-performing stocks

Similarly, the defence sector has seen considerable gains fueled by increased budget allocations, substantial order wins, and governmental initiatives, aimed at enhancing domestic procurement and reducing reliance on defence imports.

Additionally, oil PSUs have also showcased impressive performance, benefiting from a prolonged period of stable fuel prices until the recent reduction of ₹2 in petrol and diesel prices.

Phenomenal Performance

Out of the 56 stocks listed in the BSE PSU index, an impressive 37 stocks, accounting for 66%, have delivered multibagger returns ranging between 100% and 460%. Topping the list is IRFC, showcasing a stellar performance by ending 9 out of 12 months in FY24 with gains, resulting in an extraordinary return of 458%.

Also Read: IPOs in FY24: 75 issues launched; 5 stocks soared over 150% since listing

Following closely, HUDCO secured the second position with a remarkable gain of 359.5%, marking its best financial year performance since its listing in 2017. MRPL claimed the third spot in the index with a substantial return of 330%, trailed by Cochin Shipyard, Ircon International, REC, SJVN, NBCC (India), Rail Vikas Nigam, Bharat Heavy Electricals, Power Finance Corporation, and NLC India, all yielding returns within the range of 200% to 330%.

Among other noteworthy performers, stocks such as Mazagon Dock Shipbuilders, Hindustan Copper, ITI, Engineers India, Indian Overseas Bank, Punjab National Bank, Bank of Maharashtra, Central Bank of India, General Insurance Corporation of India, HAL, Punjab & Sind Bank, MMTC, Union Bank of India, The New India Assurance Company, Oil India, KIOCL, UCO Bank, NHPC, Mishra Dhatu Nigam, Bharat Electronics, IOC, Canara Bank, Coal India, HPCL, and NALCO have yielded returns ranging from 100% to 195%.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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Published: 29 Mar 2024, 05:11 PM IST