Shares of Mazagon Dock Shipbuilders surged 6 percent on January 16 to hit a fresh record high of Rs 2,492 on the National Stock Exchange (NSE) amid high volumes. A total of 27 lakh shares of the firm changed hands on BSE and NSE combined, higher than the 1-week and 1-month average volumes of 14 lakh and 20 lakh shares respectively.
The sharp rally drove the market cap of Mazagon Dock to Rs 49,293 crore. The company is expecting an order boost with approval for three additional submarines within FY24. It is in talks with Sri Lanka, Brazil, and South America for exports and will collaborate with the private sector on emerging technologies. Mazagon Dock's existing order book stands at approximately Rs 35,000 crore.
At 10:48 am, Mazagon Dock shares were trading 2.6 percent higher Rs 2,408.70 on NSE. The multibagger stock has soared 212 percent in the last one year, more than tripling investors' money. In just the last month, the stock has risen 13 percent, outperforming benchmark Nifty 50 which has risen over 3 percent during this period.
Follow our market blog to catch all the live action
Mazagon Dock is not the only PSU stock soaring high. Shares of Indian Railway Finance Corporation (IRFC) surged over 12 percent to its new high of Rs 146.80. The stock has rallied over 476 percent from its 52-week low of Rs 25.45, hit on March 28, 2023.
Meanwhile. Rail Vikas Nigam (RVNL) stock also advanced 5 percent to its new peak of Rs 231.80. The stock has surged 313 percent from its 52-week low of Rs 56.15, hit on March 1, 2023.
The prospect of the BJP's potential re-election this year is generating positive expectations for sustained capital expenditure, contributing to the increased attractiveness of PSU stocks.
This sentiment has been boosted by the noteworthy performance of the BSE PSU index in 2023, which surged 55 percent, outperforming the benchmark BSE Sensex index's return of 18.74 percent.
The robust surge in PSU stocks reflects the impressive performance and investor confidence in public sector enterprises, highlighting their attractiveness to market participants.
Also Read | Capri Global surges 12% on getting corporate agency licence
The anticipation of re-election seems to be a pivotal element in shaping market dynamics and investor sentiment by playing a significant role in the positive prospects for PSU stocks.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
