look news india
Mumbai: In January this year, mutual fund houses in the country increased their stake in shares of public sector undertakings (PSUs) to a new high. Share prices of many PSUs have reached record highs due to fund raising.
The value of fund houses' stake in PSUs also crossed Rs 4 lakh crore in January, from Rs 2.33 lakh crore in January 2023. In December this figure was Rs 3.70 lakh crore.
PSUs remained attractive even at high valuations. The share of fund houses in PSUs was 5.72 percent in January 2023, which has increased to 7.58 percent in January of the current year and this figure was 7.24 percent in December.
41 fund houses operating in the country invested in PSUs through 769 schemes. In January last year, 37 funds had invested through 692 schemes.
PSUs attracting more funds include SBI, Coal India, Power Finance Corp.
According to a research report, fund houses had invested in 45 listed public sector undertakings in January 2018, which has now increased to 71.
So far in 2024, the BSE PSU index has gained 18 percent, while the Nifty has gained only one percent. Last year also PSU index had performed better than Nifty.
A few years ago it was a common belief that government interference in public sector undertakings led to poor performance. Due to poor performance, not much return on investment was seen in PSU shares also.
