Home/Blogs/Top-performing Government Stocks to Invest in India in 2024

Top-performing Government Stocks to Invest in India in 2024

stock market

Published Date: 27 Mar 2024Updated Date: 09 Jul 20246 mins readBy MOFSL

Share this article

Introduction:

Investing in government stocks can be prudent for individuals seeking stability and reliability in their investment portfolios. In India, the government plays a crucial role in generating national wealth and positioning the country on the global economic stage. It actively participates in diverse sectors, including finance, infrastructure, oil, energy, and banking, by establishing Public Sector Undertakings (PSUs) with a primary focus on promoting social welfare.

Several such PSUs are listed on the stock exchanges, and investing in them can provide the dual benefits of capital appreciation and long-term stability. This article explores the future of PSU companies in India and presents the list of top PSU stocks to buy in 2024. Keep reading.

Open Your free Demat Account in just 5 minutes!

Government Stocks Overview

Government stocks, also known as the PSUs, represent equity shares of companies in which the government holds more than 50% stakes. Such companies can be further classified into Central Public Sector Undertakings (CPSUs), State Public Sector Undertakings (SPSUs), and Public Sector Banks (PSBs).

PSUs play a vital role in fostering economic growth, ensuring the fair distribution of resources, and advancing government policies. Operated under government control, these entities engage in various industries, including energy, telecommunications, finance, manufacturing, and more.

Investors across India have consistently favoured PSUs or government stocks. They offer stability, reliability, and potential to gain attractive long-term returns. With India ready to compete with developed countries, PSU stocks are anticipated to grow further.

Top government stocks to buy in 2024

If you are wondering which PSU stocks are the best for investment in 2024, here’s the list:

1. Oil and Natural Gas Corporation (ONGC)

ONGC is the largest crude oil and natural gas company in India. It is backed by the government's strategic approach to energy security. As the energy demand rises, ONGC's exploration and production activities position it as a key player in the market. With a commitment to sustainable practices and technological advancements, it offers robust growth potential in the long run.

2. National Thermal Power Corporation (NTPC)

NTPC is the largest power generation company in India. It is engaged in electricity generation and construction management of power plants. The government's push for cleaner and sustainable energy sources positions NTPC as a key player. The company is also poised to benefit from the increasing demand for electricity in India.

3. Power Grid Corporation Limited

Power Grid Corporation is a Maharatna PSU of the Indian Government. It is primarily involved in the planning, execution, operation, and maintenance of inter-state power transmission systems, along with providing telecom and consultancy services. With consistent revenue growth and a robust expansion plan, power grid stocks offer stability and potential long-term returns.

4. Indian Railways Finance Corp (IRFC)

IRFC is a PSU that is responsible for managing the finances of Indian Railways. The company borrows funds from financial markets and oversees their effective utilisation for creating railway assets. The recent growth of IRFC stocks has made them one of the favourites among Indian investors. As of 4 March 2024, IRFC shares were trading for Rs. 145.55 per share at the NSE, after zooming by more than 400% in the last 365 days.

5. State Bank of India (SBI)

SBI is the largest and oldest bank in India. With a wide-reaching network and a strong focus on financial inclusion, SBI remains a solid choice for investors. The government's majority ownership ensures stability and recent initiatives to streamline operations and digital transformation make SBI shares an attractive long-term investment option in 2024.

6. Coal India Limited

Coal India is a PSU engaged in coal mining across eight Indian states. It is also a Maharatna company and has more than 300 coal mines. As the largest coal-producing company in the world, Coal India is a lucrative investment avenue for long-term investors.

To conclude

These government-backed companies' stability, strategic importance, and growth potential make them stand out in the market. Investing in government stocks in India in 2024 provides a unique opportunity to align your portfolio with the nation's economic growth and development. However, you must conduct thorough research, consider market dynamics, and consult financial experts before making investment decisions.