Best & worst PSU performers in 2020 so far
Since the start of this calendar year, BSE Sensex index has dropped by 18.7 per cent, closing at 33,538.37 on June 11, 2020 from 41,253.74 on December 31, 2019. During this period, the index touched its 52-week low of 25,638.90 on March 24, 2020. This crash in the market was led by the fears of COVID-19 pandemic across the globe and the lockdown imposed in India from March 25, 2020.
Nonetheless, the PSU index which consists of 57 PSU companies dipped by 30.9 per cent to 4,803.13 as on June 11, 2020 from 6,955.57 as on December 31, 2019. Of the total 57 PSU companies included in the BSE PSU index, only four companies have managed to deliver positive returns to the shareholders as yet in this year whereas the remaining 53 companies’ stocks have tumbled significantly. Of these, 24 companies have been correcting by over 30 per cent in the above mentioned period. Majority of the PSU banks were hit the worst during this period.
Top three best performers –
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Price as on |
| Company Name |
Industry |
Market Cap (Rs in Cr) |
% change |
11-Jun-20 |
31-Dec-19 |
| Gujarat Gas Ltd. |
Trading |
19966.76 |
22.07 |
290.05 |
237.60 |
| Ircon International Ltd. |
Engineering - Construction |
4124.16 |
9.08 |
87.70 |
80.40 |
| MOIL Ltd. |
Mining & Minerals |
3605.01 |
4.01 |
151.90 |
146.05 |
Top three worst performers –
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|
|
|
Price as on |
| Company Name |
Industry |
Market Cap (Rs in Cr) |
% change |
11-Jun-20 |
31-Dec-19 |
| Bank Of Baroda |
Bank - Public |
20861.86 |
-55.69 |
45.15 |
101.90 |
| Canara Bank |
Bank - Public |
14673.10 |
-54.38 |
100.95 |
221.30 |
| Punjab National Bank |
Bank - Public |
30819.81 |
-49.11 |
32.75 |
64.35 |
(Source : Ace Equity)
In the budget 2020, the government had infused Rs 3.5 crore capital into public sector banks (PSBs) to help them retain regulatory capital requirements and finance growth plans. With regard to the oil & gas segment, the budget had proposed a capital outlay of Rs 98,522 crore for 2020-21. However, Moody’s Investors Service downgraded its ratings on six PSU oil & gas companies in recent times due to lower earnings and cash flow amid the global Coronavirus shock. In the recent economic stimulus package, the government stated that there will be a maximum of four public sector companies in strategic sectors, and state-owned firms in other segments that will eventually be privatized. The centre has fixed a budget target of Rs 2.10 lakh crore from disinvestment in the current fiscal, of which Rs 1.20 lakh crore is expected from CPSE disinvestment.