Government Stocks List – Government Stocks 2024

The table below shows the Best Government Stocks based on Market Capitalization.

Name	Market Cap (Cr)	Close Price (Rs)	1Y Return %
NTPC Ltd	4,11,381.06	417.75	69.85
Oil and Natural Gas Corporation Ltd	3,59,041.17	281.6	53.23
Hindustan Aeronautics Ltd	3,11,398.36	4,518.60	130.11
Coal India Ltd	3,05,517.26	489.9	54.35
Power Grid Corporation of India Ltd	3,04,315.76	331.15	59.86
Indian Oil Corporation Ltd	2,37,787.53	164.28	78.86
Bharat Electronics Ltd	2,08,840.38	284.55	105.38
Indian Railway Finance Corp Ltd	1,97,020.80	149.12	88.4
Power Finance Corporation Ltd	1,58,140.88	469.45	86.73
Gail (India) Ltd	1,52,449.80	222.02	68.96

Introduction to List of Government Stocks in India

NTPC Ltd

NTPC Ltd is a leading Indian energy company established in 1975, primarily engaged in the generation of electricity through thermal, hydro, and renewable sources. It is owned by the Government of India and plays a crucial role in the country’s power sector.

Market Cap: ₹ 4,11,381.06 Crore

Close Price: ₹ 417.75 Rs

1Y Return: 69.85%

1M Return: 3.24%

6M Return: 18.97%

5Y Average Net Profit Margin: 11.03%

Dividend Yield: 1.83%

5Y CAGR: 28.62%

Sector: Power Generation

Oil and Natural Gas Corporation Ltd

Oil and Natural Gas Corporation Ltd (ONGC) is a prominent Indian multinational company established in 1956, focused on exploring and producing oil and natural gas. Owned by the Government of India, it plays a vital role in the country’s energy sector.

Market Cap: ₹ 3,59,041.17 Crore

Close Price: ₹ 281.60 Rs

1Y Return: 53.23%

1M Return: -3.09%

6M Return: 2.72%

5Y Average Net Profit Margin: 6.15%

Dividend Yield: 4.29%

5Y CAGR: 14.77%

Sector: Oil & Gas – Exploration & Production

Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) is an Indian aerospace and defense company founded in 1940, specializing in the design, manufacture, and maintenance of aircraft and helicopters. It is owned by the Government of India and plays a crucial role in national defense.

Market Cap: ₹ 3,11,398.36 Crore

Close Price: ₹ 4,518.60 Rs

1Y Return: 130.11%

1M Return: 1.51%

6M Return: 22.88%

5Y Average Net Profit Margin: 18.19%

Dividend Yield: 0.75%

5Y CAGR: 66.33%

Sector: Aerospace & Defense Equipments

Coal India Ltd

Coal India Ltd (CIL) is a state-owned coal mining and production company established in 1975. It is the largest coal producer in the world, supplying coal to various sectors in India, and is owned by the Government of India.

Market Cap: ₹ 3,05,517.26 Crore

Close Price: ₹ 489.90 Rs

1Y Return: 54.35%

1M Return: 0.36%

6M Return: 11.70%

5Y Average Net Profit Margin: 18.38%

Dividend Yield: 5.14%

5Y CAGR: 19.70%

Sector: Mining – Coal

Power Grid Corporation of India Ltd

Power Grid Corporation of India Ltd (PGCIL) is a government-owned company established in 1989, and responsible for the transmission of electricity across India. It plays a crucial role in maintaining the country’s power grid and is wholly owned by the Government of India.

Market Cap: ₹ 3,04,315.76 Crore

Close Price: ₹ 331.15 Rs

1Y Return: 59.86%

1M Return: -3.17%

6M Return: 18.23%

5Y Average Net Profit Margin: 31.67%

Dividend Yield: 3.44%

5Y CAGR: 24.38%

Sector: Power Transmission & Distribution

Indian Oil Corporation Ltd

Indian Oil Corporation Ltd (IOCL) is a leading Indian multinational oil and gas company founded in 1959. It specializes in refining, pipeline transportation, and marketing petroleum products and is owned by the Government of India, playing a vital role in the energy sector.

Market Cap: ₹ 2,37,787.53 Crore

Close Price: ₹ 164.28 Rs

1Y Return: 78.86%

1M Return: -2.02%

6M Return: -2.79%

5Y Average Net Profit Margin: 3.26%

Dividend Yield: 6.95%

5Y CAGR: 10.98%

Sector: Oil & Gas – Refining & Marketing

Bharat Electronics Ltd

Bharat Electronics Ltd (BEL) is a prominent Indian aerospace and defense company established in 1954. It specializes in designing and manufacturing advanced electronic products for defense and civilian applications and is owned by the Government of India, supporting national security initiatives.

Market Cap: ₹ 2,08,840.38 Crore

Close Price: ₹ 284.55 Rs

1Y Return: 105.38%

1M Return: -1.50%

6M Return: 23.10%

5Y Average Net Profit Margin: 15.94%

Dividend Yield: 0.77%

5Y CAGR: 49.78%

Sector: Electronic Equipments

Indian Railway Finance Corp Ltd

Indian Railway Finance Corporation Ltd (IRFC) is a government-owned company established in 1986, focused on providing financial assistance for the development of Indian Railways. It primarily raises funds for railway projects through bonds and loans, supporting infrastructure expansion and modernization.

Market Cap: ₹ 1,97,020.80 Crore

Close Price: ₹ 149.12 Rs

1Y Return: 88.40%

1M Return: -7.65%

6M Return: 5.05%

5Y Average Net Profit Margin: 26.36%

Dividend Yield: 0.99%

5Y CAGR: NA

Sector: Specialized Finance

Power Finance Corporation Ltd

Power Finance Corporation Ltd (PFC) is an Indian financial institution established in 1986, specializing in providing financial assistance to the power sector. Owned by the Government of India, PFC supports power generation, transmission, and distribution projects, playing a crucial role in the energy landscape.

Market Cap: ₹ 1,58,140.88 Crore

Close Price: ₹ 469.45 Rs

1Y Return: 86.73%

1M Return: -2.21%

6M Return: 18.71%

5Y Average Net Profit Margin: 17.64%

Dividend Yield: 2.82%

5Y CAGR: 43.89%

Sector: Specialized Finance

Gail (India) Ltd

Gail (India) Ltd is a state-owned natural gas processing and distribution company established in 1984. It specializes in the transportation, marketing, and distribution of natural gas, as well as petrochemicals. Gail plays a significant role in India’s energy sector and is owned by the Government of India.

Market Cap: ₹ 1,52,449.80 Crore

Close Price: ₹ 222.02 Rs

1Y Return: 68.96%

1M Return: 6.02%

6M Return: 9.07%

5Y Average Net Profit Margin: 9.28%

Dividend Yield: 2.37%

5Y CAGR: 20.93%

Sector: Gas Distribution

What are Government Stocks?

Government stocks, also known as government bonds or sovereign bonds, are debt securities issued by a government to raise funds. They are considered low-risk investments since they are backed by the full faith and credit of the issuing government.

These stocks pay periodic interest to investors, typically known as coupon payments, and return the principal amount upon maturity. They serve as a crucial tool for governments to finance public spending, infrastructure projects, and other initiatives without increasing taxes.

Investors often view government stocks as a safe haven during economic uncertainties. They provide a stable source of income and help diversify investment portfolios, making them an attractive option for conservative investors seeking lower-risk opportunities.

Features Of Best Government Stocks

The main features of the best government stocks include safety, regular income, liquidity, and favorable tax treatment. These characteristics make them attractive investments, especially for risk-averse individuals and those seeking to secure their financial future while minimizing tax liabilities.

• Safety: Government stocks are backed by the government, making them one of the safest investment options available. The low default risk provides peace of mind to investors, particularly during times of economic instability or market volatility.
• Regular Income: These stocks typically offer periodic interest payments, known as coupons, providing a reliable source of income. This feature is appealing to income-focused investors, such as retirees, who need consistent cash flow to meet living expenses.
• Liquidity: Government stocks are highly liquid, allowing investors to buy and sell them easily in the market. This liquidity ensures that investors can access their funds when needed, without significant delays or price reductions.
• Favorable Tax Treatment: Many governments offer tax incentives on interest earned from government stocks, making them a tax-efficient investment. This can enhance overall returns and encourage investors to allocate more funds to these securities compared to other investment options.

List Of Government Stocks In India Based on 6-Month Return

The table below shows a List of the Best Government Stocks based on 6 Month Return.

Name	6M Return (%)	Close Price (Rs)
Garden Reach Shipbuilders & Engineers Ltd	101.78	1,744.70
Mazagon Dock Shipbuilders Ltd	96.32	4,237.80
Rail Vikas Nigam Ltd	88.38	489.6
Cochin Shipyard Ltd	44.73	1,559.95
Mahanagar Telephone Nigam Ltd	39.92	50.02
Hindustan Petroleum Corp Ltd	36.19	433.35
Indian Renewable Energy Development Agency Ltd	33.44	217.71
NBCC (India) Ltd	32.68	110.3
Oil India Ltd	30.59	525.1
Bharat Dynamics Ltd	27.33	1,152.40

Top Government Stocks To Buy Based on 5-Year Net Profit Margin

The table below shows the Best Government Stocks based on 5-year Net Profit Margin.

Name	5Y Avg Net Profit Margin	Close Price (Rs)
Power Grid Corporation of India Ltd	31.67	331.15
NHPC Ltd	31.23	84.95
Indian Railway Finance Corp Ltd	26.36	149.12
Oil India Ltd	20.72	525.1
Indian Renewable Energy Development Agency Ltd	18.83	217.71
Coal India Ltd	18.38	489.9
Hindustan Aeronautics Ltd	18.19	4,518.60
Power Finance Corporation Ltd	17.64	469.45
Mishra Dhatu Nigam Ltd	17.28	371.95
MSTC Ltd	17.07	709.25

Best Government Stocks To Buy Based on 1M Return

The table below shows the Best Government Stocks Based on 1-Month Return.

Name	1M Return (%)	Close Price (Rs)
National Aluminium Co Ltd	14.55	225.17
Hindustan Petroleum Corp Ltd	6.08	433.35
Gail (India) Ltd	6.02	222.02
Chennai Petroleum Corporation Ltd	5.75	943.4
NTPC Ltd	3.24	417.75
Bharat Petroleum Corporation Ltd	3.01	342.7
Mazagon Dock Shipbuilders Ltd	1.61	4,237.80
Hindustan Aeronautics Ltd	1.51	4,518.60
South Indian Bank Ltd	1.39	25.19
Garden Reach Shipbuilders & Engineers Ltd	0.61	1,744.70

High Dividend Yield Government Stocks NSE

The table below shows the Best Government Stocks based on Dividend Yield.

Name	Dividend Yield (%)	Close Price (Rs)
Indian Oil Corporation Ltd	6.95	164.28
Chennai Petroleum Corporation Ltd	5.92	943.4
Bharat Petroleum Corporation Ltd	5.9	342.7
Coal India Ltd	5.14	489.9
Hindustan Petroleum Corp Ltd	4.84	433.35
Oil and Natural Gas Corporation Ltd	4.29	281.6
Power Grid Corporation of India Ltd	3.44	331.15
Power Finance Corporation Ltd	2.82	469.45
Gail (India) Ltd	2.37	222.02
Indian Bank	2.31	512.8

Historical Performance of Government Stocks

The table below shows the Historical Performance of Best Government Stocks based on Market Cap and 5Y Return.

Name	5Y CAGR (%)	Market Cap (Cr)	Close Price (Rs)
Rail Vikas Nigam Ltd	83.63	99,997.56	489.6
NCL Research and Financial Services Ltd	71.42	81.34	0.74
Hindustan Aeronautics Ltd	66.33	3,11,398.36	4,518.60
Garden Reach Shipbuilders & Engineers Ltd	59.51	20,375.94	1,744.70
Hindustan Copper Ltd	57.92	31,128.50	317.2
Mahanagar Telephone Nigam Ltd	57.26	3,250.17	50.02
Cochin Shipyard Ltd	56.71	41,793.01	1,559.95
Bharat Dynamics Ltd	52.4	43,844.54	1,152.40
Bharat Electronics Ltd	49.78	2,08,840.38	284.55
MSTC Ltd	48.2	5,117.02	709.25

Factors To Consider When Investing In Best Government Stocks​

The main factors to consider when investing in the best government stocks include interest rates, inflation, credit ratings, and investment horizon. Understanding these elements helps investors make informed decisions that align with their financial goals and risk tolerance.

• Interest Rates: Fluctuations in interest rates significantly impact the value of government stocks. When rates rise, existing bonds may decrease in value, so investors should assess current and projected interest rate trends before investing to minimize potential losses.
• Inflation: Inflation erodes the purchasing power of fixed-income returns. Investors should consider the expected inflation rate when choosing government stocks, as higher inflation can reduce the real value of interest payments and principal, affecting long-term investment returns.
• Credit Ratings: Government stocks come with varying credit ratings that indicate the risk of default. Investors should research the issuing government’s creditworthiness and stability to ensure they are investing in securities with a strong likelihood of repayment.
• Investment Horizon: Determining the investment horizon is crucial when selecting government stocks. Long-term investors might prefer bonds with longer maturities for higher returns, while those needing immediate liquidity should consider shorter-term securities to align with their financial objectives.

How To Invest In the Best Government Stocks?

Listed below are the steps for investing in the best Government Stocks:

• Research and find out the top-performing stocks in the market.

• Evaluate and assess your risk appetite and fix your financial goals.

• Shortlist the stocks based on your fundamental and technical analysis.

• Find reliable stockbrokers like Alice Blue to open a demat account.

• Invest in the shortlisted stocks and monitor them regularly.

Impact of Government Policies on Government Stocks

Government policies significantly impact government stocks by influencing interest rates, fiscal spending, and economic stability. Policies that promote economic growth or infrastructure development can enhance investor confidence, driving demand for these securities and potentially increasing their value.

Conversely, restrictive policies, such as high taxation or austerity measures, can lead to reduced investor appetite for government stocks. Additionally, changes in monetary policy, such as interest rate hikes by central banks, may negatively affect bond prices, prompting investors to reassess their portfolios.

How Government Stocks Perform in Economic Downturns?

During economic downturns, government stocks often perform relatively well compared to other asset classes. Investors typically seek safety in these securities, as they are backed by the government, leading to increased demand and potentially stabilizing their prices.

However, prolonged downturns may still affect government stocks, particularly if the issuing government faces budget deficits or rising debt levels. Reduced tax revenues can lead to concerns about the government’s ability to meet its obligations, causing fluctuations in stock performance and investor sentiment.

Advantages Of Investing In Best Government Stocks?

The main advantages of investing in the best government stocks include capital preservation, predictable income, diversification, and tax benefits. These features make government stocks appealing to conservative investors seeking stable returns and reduced risk in their investment portfolios.

• Capital Preservation: Government stocks are generally considered low-risk investments due to their backing by the government. This characteristic helps preserve capital, making them an ideal choice for risk-averse investors who prioritize safeguarding their principal amount during market fluctuations.
• Predictable Income: These stocks typically provide regular interest payments, known as coupons, offering investors a reliable source of income. This predictability helps investors plan their finances better, particularly for those relying on fixed income during retirement or other life stages.
• Diversification: Including government stocks in an investment portfolio can enhance diversification, reducing overall risk. By balancing riskier assets like stocks with stable government securities, investors can achieve more stable returns and protect their portfolios against market volatility.
• Tax Benefits: Many governments offer favorable tax treatment for interest earned on government stocks, which can improve overall returns. This advantage makes government securities a more attractive investment option compared to other income-generating assets that may be subject to higher tax rates.

Risks Of Investing In Best Government Stocks?

The main risks of investing in the best government stocks include interest rate risk, inflation risk, credit risk, and liquidity risk. Understanding these factors is crucial for investors to make informed decisions and mitigate potential downsides associated with these securities.

• Interest Rate Risk: Government stocks are sensitive to changes in interest rates. When rates rise, the market value of existing bonds typically falls, potentially leading to capital losses for investors who need to sell before maturity. This can affect overall returns.
• Inflation Risk: Inflation can erode the purchasing power of the fixed interest payments received from government stocks. If inflation outpaces the returns, investors may find that their real income decreases, affecting their long-term financial goals and standard of living.
• Credit Risk: Although government stocks are generally considered low-risk, there is still a possibility of default, particularly with less stable governments. Investors should assess the creditworthiness of the issuing government to avoid potential losses in the event of fiscal instability.
• Liquidity Risk: While government stocks are usually liquid, specific issues or market conditions can lead to reduced liquidity. In times of economic uncertainty, it may be challenging to sell these securities without incurring significant price reductions, impacting investors’ access to cash.

Government Stocks NSE GDP Contribution

Government stocks, primarily issued by central and state governments, play a vital role in financing public expenditures and infrastructure development, which significantly contributes to GDP. By raising capital through these securities, governments can invest in projects that stimulate economic growth and job creation.

The performance of government stocks on exchanges like the NSE reflects investor confidence and economic stability. A robust government bond market can enhance liquidity and attract foreign investment, further bolstering GDP. Additionally, stable government stocks often indicate a healthy economy, encouraging consumer and business spending.

Who Should Invest in the Best Government Stocks?

Best government stocks are suitable for conservative investors seeking low-risk investment options. These securities appeal to individuals prioritizing capital preservation and consistent income, such as retirees, as they offer predictable returns backed by the government’s financial stability.

Additionally, government stocks are ideal for those looking to diversify their investment portfolios. Investors with a long-term focus, including those saving for retirement or significant future expenses, can benefit from the stability and reliability of government bonds, balancing riskier investments in their portfolios.

List Of Government Companies In Stock Market NSE – FAQs 

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.