Minimum 25% public shareholding in listed stocks would mean that disinvestment becomes imminent in PSU stocks like NTPC, MMTC, IOC and others already listed on the bourses. Companies like Wipro and DLF would also have to dilute because of the minimum 25% public shareholding announcement
Baba recommends that one should keep holding her position in PSU stocks unless the stocks have been bought at extreme highs just before budget. Even if there is no clear cut positive announcement on disinvestment, the agenda is certainly on the cards of the UPA government.
PSU stocks fell heavily yesterday in the absence of any clear cut announcements by the Finance minister in the Union Budget .The build up of expectations was so high that the PSU index sank by over 450 points to close at 7773.24
PSU disinvestment is going to be the flavor of the year. The government is already planning to announce a disinvestment of government stake in public sector companies (PSUs) in the annual budget.
With the monkey of the left parties off the back of the government, one can expect the PSU disinvestment process to start soon, in [...]
