66 Nifty 500 stocks rallied between 20% and 104% in CY24 so far; NBCC, SJVN, UCO Bank among top performers

In the opening chapters of 2024, the Indian market has embarked on a journey marked by volatility, presenting investors with a roller coaster ride of twists and turns. The landscape has been shaped by various factors, including a noticeable slowdown in Foreign Portfolio Investment (FPI) inflows into Indian stocks in January, volatile crude oil prices, the Interim Budget 2024-2025, a delay in Fed rate cuts, and the impact of higher bond yields.

These factors have collectively contributed to an environment of heightened uncertainty, forcing investors to navigate through complex market terrain. Amid this backdrop, some stocks have managed to sail through these waves and deliver healthy returns to their investors so far. Among these, PSU stocks stand tall, making them one of the hot choices among investors.

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Following the interim budget, PSU stocks sustained their winning momentum as the government increased capital expenditure by 11.1% for FY25. PSU companies stand as primary beneficiaries of government capex initiatives, leveraging this boost to their advantage.

In addition, the government set a fiscal deficit target of 5.8% for FY24 and 5.1% for FY25. An even bigger positive was gross borrowing, coming at ₹14.13 lakh crore. This led to a decline in 10-year Indian government bond yields, benefiting PSU banks, which hold a greater proportion of government bonds compared to private sector banks. 

In the current year so far, 66 stocks from the Nifty 500 index have showcased returns ranging from 20% to 104%. Leading the pack is NBCC (India), with an impressive 104% return, marking its most significant yearly gain since 2014.

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The surge in NBCC's stock was particularly notable on February 1 and February 2, with gains of 10% and 19%, respectively. This surge was triggered by the government's budget announcement, outlining an ambitious plan to construct 20 million new houses over the next five years under the PM Awas Yojana, a housing scheme initiated by the Government of India in 2015.

Following closely, Infibeam Avenues stood as the second-top gainer, with its share delivering a return of nearly 70% in CY24 so far. The sharp rally in shares came after the release of the company's Q3 FY24 earnings report on January 23, posting a strong set of numbers. The robust numbers significantly boosted investor confidence, triggering a sharp upward movement in the company's shares.

On similar lines, IRB Infrastructure has also delivered robust performance with a return of 69%. The stock witnessed a substantial surge from ₹41.55 to the current trading price of ₹70, with the majority of gains realised after the release of the company's Q3 FY24 results, showcasing a significant 33% YoY increase in its consolidated net profit.

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Another noteworthy performer in CY24 is SJVN, a Mini Ratna, Category-I, and Schedule-A CPSE under the administrative control of the Ministry of Power, Govt. of India. The company's shares have been performing well on exchanges, driven by securing multiple solar power projects.

In the most recent trading session (Monday), the stock surged nearly 20%, achieving an all-time high of ₹170.50 per share. Overall, in the current year so far, the stock has delivered a return of 63%.

Additionally, various other PSU stocks, including IRFC, NHPC, HUDCO, Rail Vikas Nigam, MMTC, RITES, MRPL, UCO Bank, IOB, Engineers India, IDBI Bank, NMDC Steel, IOC, Indian Bank, Bank of Maharashtra, General Insurance, BEML, Cochin Shipyard, Ircon, and Central Bank of India, have also posted noteworthy returns ranging from 20% to 60% in CY24.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.