List of Government Stocks in India: Who Has the Largest Market Cap Among Them?

List of Government Stocks in India: An Overview

Government plays an important role in the creation of national wealth which places the country on the world economy. Therefore, they are involved in businesses such as finance, coal, infrastructure, oil, power, banking, and others. They have their own PSU or Public Sector Undertakings which work on the idea of social welfare and these government stocks are also listed on the stock exchange for an investor to invest in them. 

What are Government Stocks?

Are you looking for some stocks that will help you diversify your portfolio to reduce the risk? Government shares are the most sought-after stocks to invest in India. They are the least risky investments and provide assured returns to investors even if they have underperformed for the last few years. 

Government-listed companies are the companies whose stocks are traded on the stock exchange. They are traded in both the stock exchanges of India NSE and BSE. These government stock lists will always have a major stake in making the country and making the stock market more competitive. These companies will have a particular index in the stock exchanges such as NIFTY PSE, NIFTY PSU Bank, S&P BSE PSU, etc. These indexes constitute a list of government companies or PSUs and will track the performance of these stocks. 

Thematic - PSU mutual funds will also invest in these stocks depending on which sector they are trying to invest in. They invest in these stocks to diversify their portfolio and minimize the risk. 

Types of Government Companies in the Share Market

CPSEs or Central Public Sector Enterprises

CPSEs are entities in which the central government or other CPSEs hold a stake of 51% or more. The two types of CPSEs are Strategic CPSEs and Non-Strategic CPSEs. Military, arms, aircraft, other defense-related businesses, atomic energy and the railway sector are the strategic CPSEs. All other remaining CPSEs are called Non-Strategic CPSEs. 

PSBs or Public Sector Banks

These are the banks, insurance, or financial institutions where the Central Government or another PSB owns at least 51% of the stake. 

SLPEs or State Level Public Enterprises

SLPEs are entities in which the state government or other SLPEs hold a stake of 51% or more. 

Government Stocks: How to Invest in Them?

• The govt company share list can be easily accessible on any online website or on stock exchange websites. The process of investing in these stocks is similar to investing in any other stock. They can directly invest in these stocks using their Demat account or buy a mutual fund scheme that invests in these government stocks. 
• The performance of these government stocks needs to be measured and should have a close watch on them because they are highly dependent on the government's fiscal decisions. The investor should closely check if there is any disinvestment or buyback of any particular government enterprise. These companies will have a share in the GDP, capital formation, and employment generation. Therefore, they are not just for the profits but also work for the welfare of society. 
• The best government company share to buy now will depend on various factors such as free cash flow, return on capital and equity, competitive advantage, valuation, etc. As an investor, it is necessary to see the industry outlook for making investments. When the economy is in the phase of economic recovery, you should invest in these government stocks. 

Top Government Stocks in India: Advantages of Investing In Them

Investing in the shares of govt share list companies will provide numerous benefits to an investor and at the same time diversify their portfolio.

Returns

They will provide assured returns to the investors as they are backed by the guarantee of the government.

Liquidity 

They are liquid investments and can be encashed anytime just like any other stock in the market. 

Risk

The risk of default on these stocks is quite less as they are entrusted by the government. 

High Dividend 

These companies will provide high dividends even if they have underperformed and the government will make sure of that. 

Best Government Stocks in India

1. The list of government companies in the stock market nse and BSE which are the best to buy now as of 21st November 2022 are 

(Data as of 21st November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Best PSU Thematic Funds in India

(Data as of 21st November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Conclusion 

Investors should clearly monitor the government stocks index while investing and should not follow the “Buy and Forget” strategy as they are subject to change in any government decisions. With the pandemic and war situation in the world, investors should select the sectors safely to invest in as they are impacted by the world economic conditions. The privatization of these government entities and banks will also impact their short-term growth but in long run, it is quite fruitful. With this, they also have the ability to provide lucrative returns as they are backed by the government and are key to the growth of success in the country.

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.