Nifty CPSE – Nifty CPSE Stocks

In the Nifty CPSE Index, top-performing stocks based on 1-year returns include Cochin Shipyard Ltd with a 212.57% return, NBCC (India) Ltd with 192.57%, and Oil India Ltd with 174.85%. Other significant gains were seen in NLC India Ltd with 114.44% and Bharat Electronics Ltd with 100.22%, highlighting the robust growth of public sector enterprises in energy, infrastructure, and defense sectors.

The table below shows the Nifty CPSE stocks based on the highest market capitalisation and 1-year return.

Introduction To Nifty CPSE Stocks

NTPC Ltd

The Market Cap of NTPC Ltd is Rs. 427,489.08 crores. The stock’s monthly return is 7.24%. Its one-year return is 80.49%. The stock is 3.01% away from its 52-week high.

NTPC Limited is an India-based company that specializes in power generation. The company’s main focus is on producing and selling large quantities of power to State Power Utilities. NTPC operates in two main segments: Generation and Others. 

The Generation segment is responsible for producing and selling power to state power utilities, while the Other segment provides services such as consultancy, project management, energy trading, and more. NTPC owns and operates a total of 89 power stations in different Indian states, either on its own or through joint ventures and subsidiaries.  

Oil and Natural Gas Corporation Ltd

The Market Cap of Oil and Natural Gas Corporation Ltd is Rs. 367,917.10 crores. The stock’s monthly return is -10.65%. Its one-year return is 58.21%. The stock is 18.13% away from its 52-week high.

Oil and Natural Gas Corporation Limited is an Indian company that specializes in the exploration, production, refining, and marketing of crude oil and natural gas. The company operates in various business segments including Exploration and Production, as well as Refining and Marketing. 

Its activities involve exploring, developing, and producing crude oil, natural gas, and related products within India, as well as acquiring oil and gas assets internationally for exploration, development, and production. Additionally, the company is involved in downstream activities such as refining and marketing petroleum products, petrochemicals, power generation, LNG supply, pipeline transportation, SEZ development, and helicopter services.  

Power Grid Corporation of India Ltd

The Market Cap of Power Grid Corporation of India Ltd is Rs. 326,830.03 crores. The stock’s monthly return is 4.36%. Its one-year return is 72.46%. The stock is 6.42% away from its 52-week high.

The Power Grid Corporation of India Limited is a power transmission company that focuses on the planning, implementation, operation, and maintenance of the Inter-State Transmission System (ISTS), as well as providing telecom and consulting services. The company has three main segments: Transmission Services, Consulting Services, and Telecom Services. 

Within Transmission Services, the company is responsible for transmitting bulk power across different states of India through extra high voltage/high voltage (EHV/HV) networks. The Consulting Services segment offers a wide range of consultancy services in the transmission, distribution, and telecom sectors, including planning, design, engineering, procurement management, operation and maintenance, financing, and project management.  

Coal India Ltd

The Market Cap of Coal India Ltd is Rs. 313,917.26 crores. The stock’s monthly return is -2.60%. Its one-year return is 72.10%. The stock is 8.20% away from its 52-week high.

Coal India Ltd., an Indian coal mining company, operates in 83 mining areas across eight states in India through its subsidiaries. The company oversees a total of 322 mines, comprising 138 underground, 171 opencast, and 13 mixed mines, as well as various facilities like workshops and hospitals. 

Additionally, Coal India Ltd. has 21 training Institutes and 76 Vocational Training Centers. The company also runs the Indian Institute of Coal Management (IICM), a corporate training institute offering multi-disciplinary programs.  

Bharat Electronics Ltd

The Market Cap of Bharat Electronics Ltd is Rs. 207,920.51 crores. The stock’s monthly return is -5.13%. Its one-year return is 100.22%. The stock is 22.17% away from its 52-week high.

Bharat Electronics Limited, headquartered in India, specializes in manufacturing and supplying electronic equipment and systems for both defense and non-defense markets. 

In the non-defense sector, the company offers products and services such as cyber security, e-mobility, railway systems, e-governance systems, homeland security, civilian radars, turnkey projects, components/devices, and telecom and broadcast systems.  

NHPC Ltd

The Market Cap of NHPC Ltd is Rs. 95,643.35 crores. The stock’s monthly return stands at -2.96%. Its one-year return is 74.90%. The stock is 27.37% away from its 52-week high.

NHPC Limited is an India-based company primarily focused on generating and selling bulk power to various utilities. The company is also involved in project management, construction contracts, consultancy services, and power trading. 

NHPC is currently working on constructing eight hydropower projects with a total capacity of around 6434 megawatts (MW). The company’s consultancy services cover a range of activities including survey, planning, design, construction, operation, maintenance, and renovation of hydropower projects.  

Oil India Ltd

The Market Cap of Oil India Ltd is Rs. 92,513.32 crores. The stock’s monthly return is -21.22%. Its one-year return stands at 174.85%. The stock is 42.52% away from its 52-week high.

Oil India Limited is an India-based integrated exploration and production company focused on the upstream sector, specializing in crude oil and natural gas. The company’s operations are divided into segments such as Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy, and Others. 

It owns and manages a range of facilities and equipment for seismic and geodetic work, 2D and 3D data acquisition, processing and analysis, drilling, oil and gas field development and production, LPG production, and pipeline transportation. The company operates a fully automated crude oil trunk pipeline, approximately 1,157 kilometers long, running from Naharkatia to Barauni.  

SJVN Ltd

The Market Cap of SJVN Ltd is Rs. 51,417.44 crores. The stock’s monthly return is -4.38%. Its one-year return is 80.97%. The stock is 30.31% away from its 52-week high.

SJVN Limited, an India-based company, primarily focuses on electricity generation and power generation tariffs. The company offers three main products and services, including electricity generation from hydro, wind, and solar sources, consultancy services, and power transmission. 

Its business portfolio encompasses thermal, hydro, wind, and solar power generation, power transmission, consultancy services, and power trading. SJVN Limited has expanded into wind power generation, completing its first project, the 47.6 MW Khirvire Wind Power Project in Ahmednagar district, Maharashtra.  

Cochin Shipyard Ltd

The Market Cap of Cochin Shipyard Ltd is Rs. 44,868.43 crores. The stock’s monthly return is -10.02%. Its one-year return is 212.57%. The stock is 78.34% away from its 52-week high.

Cochin Shipyard Limited, an India-based company, specializes in shipbuilding and ship repair services. The company constructs various types of vessels and offers repairs, refits, and upgrades for ships. 

Their shipbuilding portfolio includes defense vessels like aircraft carriers and offshore patrol vessels, commercial vessels such as oil tankers and bulk carriers, and offshore vessels like platform supply and tug supply vessels. Additionally, they provide repair and maintenance services for defense and commercial ships, as well as marine engineering training and advanced solutions.

NLC India Ltd

The Market Cap of NLC India Ltd is Rs. 40,087.66 crores. The stock’s monthly return is 4.69%. Its one-year return is 114.44%. The stock is 10.20% away from its 52-week high.

NLC India Limited, an India-based company, is involved in lignite and coal mining, power generation using lignite and renewable energy sources, and consultancy. The company’s operations are divided into Mining and Power Generation segments. 

It has a lignite mining capacity of about 30.1 million metric tons per year and a coal mining capacity of 20 million metric tons per year. The company’s mining activities include one open-cast coal mine (Talabira II and III) and four open-cast lignite mines (Mine I, Mine II, Mine IA, and Barsingsar Mine).  

NBCC (India) Ltd

The Market Cap of NBCC (India) Ltd is Rs. 32,434.20 crores. The stock’s monthly return is -4.35%. Its one-year return is 192.57%. The stock is 22.97% away from its 52-week high.

NBCC (India) Limited, headquartered in India, provides value-added services across three main segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). 

The Real Estate Development segment focuses on residential projects like apartments and townships, as well as commercial projects including corporate office buildings and shopping malls. The EPC segment provides a range of services such as project conceptualization, feasibility studies, detailed project reports, engineering, procurement, construction, commissioning, and testing.  

What is Nifty CPSE?

Nifty CPSE, or the Nifty Central Public Sector Enterprises Index, is a stock market index that represents publicly-owned sector companies in India. It is designed to measure the overall performance of these enterprises, reflecting their market trends and economic impact.  

The index includes various public sector companies across different industries, providing investors with insights into the performance of government-owned enterprises. Nifty CPSE serves as a benchmark for assessing investment opportunities in the public sector, illustrating the health and growth prospects of these companies.

Nifty CPSE Weightage

The table below shows the Nifty CPSE weightage.

Nifty CPSE Stocks Based On 1M Return

The table below shows the Nifty CPSE stocks based on 1 month return.

Nifty CPSE Index Based On Dividend Yield

The table below shows the Nifty CPSE index based on dividend yield.

How is the Nifty CPSE Index Value Calculated?

The Nifty CPSE Index Value is derived from the market capitalization of the top Central Public Sector Enterprises (CPSEs) listed on the National Stock Exchange. It reflects the stock performance of these companies, providing a broad measure of their collective market value.  

To calculate the index, the adjusted market capitalization of the eligible CPSEs is taken, reflecting changes in share prices and the number of outstanding shares. This calculation ensures that the index accurately represents the economic performance of the public sector enterprises in India’s stock market.

How Stocks Are Selected for the Nifty CPSE Stocks?

The selection of stocks for the Nifty CPSE (Central Public Sector Enterprises) index involves a meticulous process. This process typically includes evaluating a company’s financial health, market capitalization, and trading liquidity, ensuring that only the most robust and active public sector firms are included.  

Furthermore, the inclusion criteria often require that companies demonstrate a significant contribution to the economy, governance standards, and a consistent performance record. This approach aims to provide investors with a reliable benchmark that reflects the performance of leading CPSEs in the market.

History of the Nifty CPSE

The Nifty CPSE Index was launched on March 31, 2014, by the National Stock Exchange of India (NSE) to track the performance of major Central Public Sector Enterprises (CPSEs). The index comprises 10 significant public sector companies, selected based on market capitalization and liquidity. 

It aims to provide investors with a benchmark for investing in government-owned firms, reflecting the overall health of public sector enterprises in India. Over the years, the index has evolved, promoting transparency and encouraging investment in public sector stocks, while also aiding the government in assessing the performance of its enterprises.

Key Factors of Nifty CPSE Stocks Performance

The factors influencing the performance of Nifty CPSE stocks encompass a variety of economic and operational elements. These factors can significantly impact the valuation and stability of public sector enterprises in India.

1. Government Policies: The performance of Nifty CPSE stocks is heavily influenced by government policies and regulations. Changes in policies, such as subsidies, privatization efforts, or infrastructure investments, can directly affect the profitability and operational efficiency of these enterprises.
2. Market Demand: Fluctuations in market demand for goods and services offered by CPSEs play a crucial role in stock performance. A rise in demand can boost revenues and profits, positively impacting stock prices, while a decline may have the opposite effect.
3. Global Economic Conditions: International economic trends and global market conditions can significantly influence the performance of Nifty CPSE stocks. Factors such as oil prices, currency fluctuations, and trade dynamics can affect operational costs and revenue generation.
4. Financial Performance: The financial health of CPSEs, including metrics like revenue growth, profit margins, and debt levels, directly impacts investor confidence. Strong financial performance often leads to higher stock valuations, attracting more investments.
5. Technological Advancements: The ability of CPSEs to adopt and implement new technologies is vital for maintaining competitiveness. Embracing innovation can lead to improved efficiency, reduced costs, and enhanced service delivery, positively influencing stock performance.

Benefits of Investing in the Nifty CPSE

The primary benefits of investing in the Nifty CPSE include exposure to stable, government-backed enterprises, which often provide a level of security and reliability for investors. These companies typically enjoy robust market positions and consistent demand for their services.

1. Attractive Dividends: Nifty CPSE stocks are known for offering attractive dividend yields. These public sector enterprises often distribute a significant portion of their profits as dividends, providing investors with a steady income stream alongside potential capital appreciation.
2. Stability and Security: Investing in CPSEs generally comes with a sense of stability due to government backing. This support reduces the risk of bankruptcy or significant downturns, making these stocks appealing for conservative investors seeking to minimize risk.
3. Long-term Growth Potential: CPSEs often operate in sectors crucial for national development, such as energy and infrastructure. As India continues to grow economically, these enterprises may benefit from increased investments and projects, leading to long-term capital appreciation for investors.
4. Diversification: Including Nifty CPSE stocks in an investment portfolio can enhance diversification. By investing in various sectors such as oil, finance, and utilities, investors can mitigate risk and reduce the impact of sector-specific downturns on their overall portfolio performance.
5. Government Initiatives: The Indian government often promotes policies favoring CPSEs, including infrastructure spending and reforms. Such initiatives can enhance the operational environment for these companies, potentially driving up their stock prices and providing additional returns for investors.

Risks of Investing in the Nifty CPSE Stocks

The main risk associated with investing in Nifty CPSE stocks lies in their susceptibility to political and economic changes. Government policies can significantly impact these enterprises, leading to fluctuations in stock performance and overall investor confidence.

1. Political Instability: Changes in government or political instability can affect the operations of CPSEs. Policy shifts, such as privatization or altered regulations, may create uncertainty, potentially leading to stock price volatility and affecting long-term investments.
2. Operational Inefficiencies: Many CPSEs face challenges related to bureaucracy and inefficiency. These operational hurdles can result in higher costs and reduced profitability, negatively impacting investor returns and making these stocks less attractive compared to private sector alternatives.
3. Market Sensitivity: Nifty CPSE stocks can be sensitive to broader market trends and economic cycles. Economic downturns may lead to decreased demand for their products and services, resulting in lower revenues and potential declines in stock prices.
4. Dependence on Government Funding: CPSEs often rely on government funding for projects and operations. If budget allocations are reduced or delayed, it can hamper growth prospects, negatively impacting stock performance and investor sentiment.
5. Limited Growth Opportunities: Some CPSEs may have limited growth potential compared to private sector companies. Constraints imposed by regulatory frameworks and competitive pressures can restrict expansion, leading to lower capital appreciation for investors over time.

How To Invest in Nifty CPSE Stocks?

Investing in Nifty CPSE stocks involves several steps. Start by researching the companies listed under the Nifty CPSE index to understand their performance and fundamentals. Creating an account with a reliable brokerage, such as Alice Blue, is essential for trading. Once your account is set up, monitor market trends and choose the stocks you want to invest in.  

What Are The Tax Implications Of Investing In Nifty CPSE Stocks?

Investing in Nifty CPSE stocks has specific tax implications for investors in India. Long-term capital gains (LTCG) exceeding ₹1 lakh are taxed at 10%, while short-term capital gains (STCG) are taxed at 15%. Dividends received from CPSE stocks are also taxable in the hands of investors as per their applicable income tax slab. Additionally, investors can benefit from tax deductions under Section 80C for certain investments in public sector enterprises, promoting a favorable investment climate in government-owned companies.

Future of Nifty CPSE

The future of Nifty CPSEs looks promising, driven by increasing government investments in infrastructure and economic reforms aimed at enhancing operational efficiency. As India focuses on sustainability and energy transitions, public sector enterprises in sectors like renewable energy and transportation are likely to benefit. 

Additionally, potential privatization initiatives may improve competitiveness and attract more investments. Overall, with a supportive policy environment and a focus on growth, Nifty CPSEs may present significant opportunities for investors in the coming years.

FAQs – Nifty CPSE Stocks

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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.