InvestorQ : Do you think that PSU stocks will benefit from the Union Budget and what PSU stocks can I buy ahead of the Union Budget?
Aditi Sharma made post

Do you think that PSU stocks will benefit from the Union Budget and what PSU stocks can I buy ahead of the Union Budget?

Answer
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Aashna Tripathi answered.
1 year ago


PSU stocks have been largely wealth depleting companies in the last few years and that is surely an area that requires some urgent attention. You can look forward to some interesting changes in this budget. Here are a few ideas.

· PSU banks could get a leg up from another round of capitalization and the government expects to infuse at least Rs.40,000 crore into bank capital. That should allow them to expand their loan books.

· You can also expect that the government will make some progress on privatization of PSU banks and be willing to sell more than 50% stake to the public at large. The budget could also make announcements on greater decision making freedom.

· Then there are PSUs like NTPC where the budget could look at consolidation of power capacity by helping them buy out power capacity at much lower rates. A detailed power policy is expected.

· Finally, there are cases like Air India, BSNL and MTNL where the government is taking huge losses each year. This can be avoided by selling them piece meal to private parties and monetizing their hidden assets in the balance sheet.

If I were to talk of specific stocks, then the likes of SBI and NTPC could be the big beneficiaries of this budget. You can position yourself accordingly.