CPSE Indices Lead Stock Market Surge with Impressive Growth

The Central Public Services Enterprises (CPSE) indices have significantly outperformed benchmark indices in the stock market over the past three years, with BSE and NSE CPSE indices witnessing remarkable growth. The government strategy focuses on enhancing CPSEs' performance through management alignment, CAPEX investment, and strategic disinvestment.

In a notable economic breakthrough, the Central Public Services Enterprises (CPSE) indices have demonstrated remarkable growth by outperforming benchmark indices in the stock market over the past three years. This impressive performance was highlighted by the Ministry of Finance through a post on social media platform X, applauding the accelerated growth observed between October 2021 and October 2024.

The market capitalization of listed CPSEs saw a substantial increase, soaring from Rs 12.10 lakh crore at the end of March 2021 to Rs 43.65 lakh crore by October 2024. The BSE CPSE Index alone surged by 157.22%, while the NSE CPSE Index rose by 185.79%, outpacing the modest 38.68% rise in Sensex and 40.72% growth in Nifty 50.

The government's strategic framework focuses on bolstering the performance and value creation of these enterprises. By aligning management incentives with organizational objectives, CPSEs are empowered to operate with greater efficiency, making substantial progress in capital expenditure and ensuring consistent dividends to shareholders. The dividend receipts have jumped significantly, reflecting an increase from Rs 39,750 crore in 2021-22 to Rs 63,749 crore by 2023-24.

(With inputs from agencies.)