Independence Day: Sensex Up 5,560 Points, Nifty 50 Surges 1,600 Points In 1 Year; PSU Stocks Top Picks Ahead

Indepence Day: Stock Market indices have moved up by at least 10% from the last 76th Independence Day to the current Indepence Day. In 1 year, PSU stocks emerged as star performers, and they are expected to continue creating value returns for investors. Since India is celebrating the 77th year of independence on August 15, investors can build a portfolio of value stocks which includes PSU stocks as top picks. Also, experts are bullish on sectors like automobile, pharma, and capital goods among others.

On August 14, 2023, Sensex ended at 65,401.92, up by 79.27 points or 0.12%, while Nifty 50 edged higher by 6.25 points or 0.03% to end at 19,434.55.

From last Independence Day to the current one, Sensex rallied by 5,559.71 points or 9.29%, while Nifty 50 benchmark skyrocketed by 1,609.30 points or 9.03%. But PSU stocks have given impressive returns, better than broader indices.

In 1-year, the Nifty PSU Bank index has skyrocketed by a huge 1,654.60 points or 57.67%, outperforming both Sensex and Nifty 50. Not just PSU banks, but also CPSE and PSU stocks have outperformed the broader domestic market. BSE CPSE index soared by 466.63 points or 28.57%, and BSE PSU index advanced by 2,422.89 points or 27.10% since last Independence Day.

Talking about 1-year market performance, S Ranganathan, Head of Research at LKP Securities said, "It has indeed been a tremendous ride for our Equity Markets from last Independence Day to this Independence Day when one considers the fact that Domestic Investors took the FII Bears by the Horn for the First 8 Months before the latter started their Buying into India. While the Benchmark Indices itself moved up only 10% during this one year, the PSU Index rose over 30% during this period with individual stocks across sectors rising over 100%."

He added, "During this period we have seen a rise in the number of Indians taking up Entrepreneurship and several Start-Ups have emerged across sectors. Demographic Advantage and GOI thrust on - Make in India coupled with the PLI schemes have made their presence felt."

Further, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services highlighted that since the last Independence Day Nifty is up 9.6%. The broader market has outperformed significantly. Nifty Small-cap is up 23.68% and Nifty Mid-cap is up 22.46 %. There are big variations in sectoral performances with Nifty FMCG leading with a 21.23 % gain followed by Nifty Realty with a 19.03 % gain, Nifty Pharma with an 18.75% gain, Nifty Auto with an 18.49% gain and Nifty Bank with 12.85% gain. The laggard is Nifty IT with a mere 3.52% gain.

On the global front, Vijayakumar said, "The U.S. soft landing narrative supported the markets by lifting the mother market US and most other markets. Domestically, the strength of the Indian economy and the huge FPI inflows during the last three months helped the rally."

How to build your portfolio after the 77th Independence Day? Find out!

LKP securities expert said, "As India lays the foundation for -Amrit Kaal, the PSU companies in our view would start winning both -The heart and Mind of domestic investors. While many of them have given good returns during this period with the PSU Index itself returning 30%, we believe that value creation shall unfold in these companies by the same time next year."

Meanwhile, Vijayakumar said, "We are moderately optimistic about the market for the next one year. Investors can expect around 15% returns in the next one year with the bulk of the returns coming in early 2024," adding, "We are bullish on capital goods, autos and auto components, pharmaceuticals and construction-related segments."

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.