Public Sector Units (PSUs) form a solid industrial base of the nation as they comprise the core sectors of the Indian economy. PSUs are owned by the government and are spread across sectors such as capital goods, metals, mining, infrastructure, and finance.
It is astonishing to note that the total market capital of PSUs in India is more than Rs. 10 lakh crores. Contributions from PSUs to the government are in the form of corporate taxes, excise and customs duty, and dividends.
The stock exchange for PSUs in India is progressing towards online stock trading. Investors need to be mindful that the buy-and-forget strategy does not hold good for online stock trading in PSUs. This is because PSUs are highly impacted by the policy amendments made by the government. The future of the PSUs lies with the government’s disinvestment agenda and bulging fiscal deficit.
Online stock trading in PSUs is, however, considered a safe bet as the dividend payout is quite lucrative. The government has laid out a public sector policy that will facilitate higher levels of efficiency in the PSUs as it will increase privatisation and private sector participation.
If you are looking for online stock trading of PSUs, the following are some of the most commonly traded stocks on the exchange:
1. SBI
- The State Bank of India has maintained a dominant position in the market due to its asset size and is regarded as the largest bank in the sector owing to its business.
- It is reported that as of 31st March 2021, the government holds about 57% of the bank’s shares.
- The SBI share price stands at Rs. 498.40 while having a dividend yield ratio of 0.80.
- SBI’s market capital is at Rs. 4.44 lakh crore.
2. Canara Bank
- With its ownership under the Ministry of Finance, Canara Bank is the third-largest nationalised bank in India with a market capital of Rs. 41,806 crore.
- Canara Bank’s share price is Rs. 230.45 which makes it an affordable buy with a chance for a good return.
3. Bank of Baroda
- Bank of Baroda has its headquarters in Vadodara, Gujrat. It has a great overseas presence with more than 100 offices.
- This is another stock in the affordable range with a share price of Rs. 104.85.
- The market capital of the bank stands at Rs. 54,221 crore.
4. Punjab National Bank
- Segments of Punjab National Bank are divided into retail banking, treasury, corporate banking, and other operations.
- The loan portfolio of the bank includes agriculture loans, MSME and corporate loans.
- The bank offers cash management services as well as import and export finance.
- The market capital of the bank is Rs. 40,960 crore and the share price stands at Rs. 37.20.
Online trading of PSU stocks is on the rise as they carry a higher going concern due to the stocks falling under the government’s umbrella. This is a key factor in the growth of the Indian economy. You can earn good returns if they carry a sound knowledge of the price fluctuations of these stocks.