Anil Singhvi: Sell PSU stocks on every jump in markets; privatisation set to create stiff competition

Government's decision to allow FDI (Foreign Direct Investment) up to 74 per cent through  the automatic route in the defence sector against the earlier limit of 49 per cent is a good step, Zee Business Managing Editor Anil Singhvi opines. He said that India will gain on the technology front

Anil Singhvi: Sell PSU stocks on every jump in markets; privatisation set to create stiff competition
He however recommends that the investors should sell PSU stocks when they are on a high, indicating that these companies do not inspire a lot of confidence
Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Mon, May 18, 2020
05:56 pm
new delhi, ZeeBiz WebDesk
RELATED NEWS
Market Guru in talk with RJ Salil Acharya of Radio City: Search opportunities to buy real estate & Insurance shares when Nifty corrects & trades at 17,100-17,300 levels Market Guru in talk with RJ Salil Acharya of Radio City: Search opportunities to buy real estate & Insurance shares when Nifty corrects & trades at 17,100-17,300 levels
Stocks to buy with Anil Singhvi: Know why Vikas Sethi is bullish on Alicon Castalloy and Emmbi Industries shares? check targets and stoploss Stocks to buy with Anil Singhvi: Know why Vikas Sethi is bullish on Alicon Castalloy and Emmbi Industries shares? check targets and stoploss
Midcap stocks to buy with Anil Singhvi: Jay Thakkar recommends Burger King, Sundaram Finance, TCI Express for gains - Check target and stoploss here Midcap stocks to buy with Anil Singhvi: Jay Thakkar recommends Burger King, Sundaram Finance, TCI Express for gains - Check target and stoploss here
Anil Singhvi’s Strategy September 17: Day support zone on Nifty is 17,500-17,525 & Bank Nifty is 37,300-37,450 Anil Singhvi’s Strategy September 17: Day support zone on Nifty is 17,500-17,525 & Bank Nifty is 37,300-37,450
Midcap picks to buy with Anil Singhvi: Siddharth Sedani picks Birla Corp, Cyient, Clean Science for high returns- Know the targets here Midcap picks to buy with Anil Singhvi: Siddharth Sedani picks Birla Corp, Cyient, Clean Science for high returns- Know the targets here

Government's decision to allow FDI (Foreign Direct Investment) up to 74 per cent through  the automatic route in the defence sector against the earlier limit of 49 per cent is a good step, Zee Business Managing Editor Anil Singhvi opines. He said that India will gain on the technology front. The good thing is that weapons will be made in India, he added. 

He however recommends that the investors should sell PSU stocks when they are on a high, indicating that these companies do not inspire a lot of confidence.

Watch Zee Business Tweet Video Below: 

On Saturday, the government had announced a hike in foreign investment limit in defence manufacturing and opened up the space sector while giving a new push to old reforms of commercial coal mining, mineral block auction and privatisation of power distribution companies.

On the impact of this decision on the stock prices of the companies in the defense sector, Singhvi said that the impact could be seen only after sometime. As the investment will not start immediately. First a list will be made which will identify the weapons to be made here. The companies will then look for partners to collaborate with. The foreign investors will also weigh on how much profit they can make through the partnerships in India. All this will take time, he said.

Most defense sector companies are government enterprises and creating a new joint venture could take a long time.

In terms of sentiments, the move by Centre is good, which is why the defence sector stocks  have gained today. The situation might be same tomorrow. Singhvi, however, cautioned investors not to get trapped in the cash market. He said if investors are buying with a 1 or 2-day view, then they can earn profits from these stocks.

The government has decided to keep just one government company in strategic sector while the PSU companies in non-strategic sector will be privatised. This will increase competition for the government companies. He also said that it will not be easy for the government to do strategic sale of the companies. You need a small capital market to get good value out of the government companies.

See Zee Business Live TV Streaming Below:

Anil Singhvi also said that the government should remove Long Term Capital Gains Tax to revive sentiments in the Indian markets.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.