Disinvestment talks may spur buying - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Disinvestment talks may spur buying

Nov 20, 2000

The government seems to have made up its mind about disinvesting from oil and telecom public sector units (PSUs). Funds that had ignored PSU stocks in the past may now want to take another look at them.

Open-ended Growth FundsDate of holding% HoldingNAV (Rs)
 Alliance Basic Ind. (Gr)31 Oct,2000 9.48.4
 Birla MNC Fund (Gr)29 Sep,2000 7.029.0
 Canbonus30 Sep,2000 6.69.5
 Templeton Growth Fund31 Aug,2000 5.011.8
 Zurich (I) Top 200(Gr)29 Sep,2000 4.912.6
 K P Balanced (Gr)31 Oct,2000 3.98.2
 Sundaram Tax Saver31 Oct,2000 3.59.1
 K MNC10 Nov,2000 3.59.1
 Sundaram Growth 31 Oct,2000 3.412.9
 Pru ICICI Tax (Gr)29 Sep,2000 3.012.3
 Alliance Equity Fund (Gr)30 Sep,2000 3.035.8

For long oil PSUs were snubbed by fund managers given the government’s indecisive stand on disinvestments. So we had fundamentally solid stocks like HPCL and BPCL languishing at price/earnings - P/E of 4-5 and there were still no funds buying such stocks. In our talks with fund managers, we realized that funds would not accumulate oil PSUs until the government was categorical on the disinvestment issue that had plagued the industry for quite some time now.

Now that the government has come out with some definite plans for disinvestment, one can expect to see funds accumulate oil stocks with some fervour. MTNL and VSNL are also likely to witness some buying interest given the government’s decision to lower stake in these companies.

Equitymaster requests your view! Post a comment on "Disinvestment talks may spur buying". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS