Disinvestment target achievable; PSU stocks to remain subdued, say analysts

The government has set itself an ambitious disinvestment target of Rs 90,000 crore for the financial year 2019 – 20 (FY20), which, analysts believe, can be achieved but is likely to keep the gains in PSU stocks capped going ahead.

The government has already short-listed 10 central public sector enterprises (CPSEs), including RailTel, TCIL and Tehri Hydro Development Corporation (THDCL) for disinvestment in FY20. Thus far in FY19, Rs 36,000 crore has already been raised through stake sale in CPSEs, as well as tranches of Exchange Traded Funds (ETFs) and share buybacks and faces an uphill task of garnering another