ETMarkets Investors’ Guide: Is there more steam left in the PSU privatisation play? | The Economic Times Markets Podcast

Hello, you have tuned into ETMarkets Investors’ Guide, a show about asset classes, investment ideas and market trends. I am Nikhil Agarwal.

As Nifty bled in four out of last 5 sessions, one most visible trend was traders throwing their weight behind select PSU stocks. In fact, many of them laughed all the way to the bank, as Nifty PSU Bank index shot up some 11 per cent amid the halt to the broader market rally. Indian Overseas Bank led the pack with a spectacular rally of 59 per cent. Two govt-owned PSU stocks — New India Assurance Company (NIA) and General Insurance Corporation of India (GIC Re) — jumped 44 per cent and 37 per cent, respectively, for the week.

The only common factor connecting traders’ interest in these stocks is the buzz around PSU privatisation. Let’s find out more about money-making opportunities in the PSU pack in today’s special podcast with independent market expert Rajiv Nagpal.

Welcome to the show Mr Nagpal.

1) After last week’s head-turning rally, do you think PSU bank stocks like Indian Overseas Bank, Central Bank of India and Bank of Maharashtra or others still have some juice left?

2) Is there more to the rally in PSU bank stocks than just the news about privatisation? How attractive is the pack from a valuation point of view?

3) Besides banking stocks, the privatisation buzz also led to a rally in New India Assurance Company and GIC Re last week. Can one buy the dip in these 2 stocks?

4) How do you think stocks of private insurers like HDFC Life and ICICI Prudential might get affected once the privatisation takes off?

Thank you Mr Nagpal. That’s all in today’s special podcast but keep checking this space for more such interesting content. Good bye!

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