PSU stocks: On divestment hopes
With the UPA set to form the Government without the support of the Left but with a number of smaller parties, the PSU firms are expected to tap the stock market route in an aggressive way for raising resources as the smaller parties have no ideological objection to the arrangement. Counters such as BEML, Bharat Electronics, BHEL, Container Corporation, Dredging Corporation, Engineers India and Neyveli Lignite Corporation could see immense activity in the days ahead. Banks: Betting on reforms Expectations are high that financial sector reforms may see a big push. Relaxation of FDI cap in insurance, a free hand for banks in branch and ATM expansion and consolidation of the sector by merging underperforming small banks and stake dilution in some public sector banks are some of key reforms that might happen soon. Watch out for stocks such as Central Bank of India, Canara Bank, Indian Bank and Bank of Maharashtra besides banking behemoth SBI . Retailing: