Nifty PSE Index Surges 8% to Close Above 11,000 for the First Time; PFC and REC Lead the Charge

In an unprecedented rally, the Nifty Public Sector Enterprises (PSE) index soared 8% on Monday, closing above the 11,000 mark for the first time. The surge was led by stellar performances from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), among others.

Market Performance

The PSE index, which comprises 20 state-run companies, saw all its constituents reporting gains. PFC emerged as the top performer with a remarkable 13.51% gain, followed closely by GAIL and REC, which rose by 12.60% and 12.52%, respectively. This robust performance has propelled the index to a year-to-date gain of over 44% and an astounding 136% increase over the past year.

Key Performers

• PFC: +13.51%
• GAIL: +12.60%
• REC: +12.52%

Substantial Gains Across the Index

Apart from the top gainers, twelve other constituents of the PSE index reported gains between 5% and 10%. Significant performers included:

• Concor: +9.50%
• NTPC: +9.33%
• Power Grid: +9.03%
• Hindustan Petroleum: +8.80%
• IOC: +8.13%
• BEL: +8.06%
• ONGC: +7.43%
• HAL: +6.30%
• BPCL: +6.09%
• NHPC: +5.59%
• LIC: +5.25%
• Oil India: +5.24%

Shares of SAIL, Coal India, BHEL, IRCTC, and NMDC also showed notable performance, rising between 1% and 5%.

Technical Recommendations

Technical Analyst Sudarshan Sukhani has made buy recommendations for several PSE stocks:

• Coal India: Buy with a stop loss of ₹460
• BHEL: Buy with a stop loss of ₹290
• GAIL: Buy with a stop loss of ₹198
• NMDC: Buy with a stop loss of ₹245

CLSA’s Insight on State-Run Companies

Global brokerage firm CLSA has predicted that shares of state-run companies might peak in June or July before the new government presents its budget. CLSA has identified 54 stocks, labeled as “Modi Stocks,” which have benefited directly from the government’s policies. These stocks have seen an average rise of over 50% in the last six months. CLSA expects this rally to continue if the election results are favorable.

Top CLSA Recommendations

Among the “Modi stocks,” CLSA’s top buy recommendations include:

• NTPC
• NHPC
• PFC
• ONGC
• Indraprastha Gas
• Mahanagar Gas
• Reliance Industries
• Bharti Airtel
• Indus Towers

Market Context

The Indian stock market experienced its best trading day in three years, buoyed by exit polls predicting a third term for Prime Minister Narendra Modi’s government. The Nifty50 and BSE Sensex both closed at record highs, hitting over 23,250 and 76,400, respectively.

For more comprehensive coverage of legal developments, business news, and real-time updates on law and politics, visit Kanishk Social Media. If you found this news article informative, please share it with a friend!