Nifty has been facing troubles in the recent past. We have seen the downtrend of Nifty but never has it been this worse. But what has caused this great downfall? It has a lot to do with the increasing crude prices.
The pricing goes up and up and that has resulted in Nifty’s downfall. Crude oil pricing used to increase every year but this time around, it has increased in such a manner that the whole economy is in blunder. Adding more to it, the financial policies implemented have cause Nifty’s slope to go down.
This is why PSU Banks can prove to be a key to Nifty’s revival. The reason behind it is the fact that PSU Banks are doing an impeccable job to earn a great number of profits in the market.
The concept of PSU allows the experienced hand of government to join in with the fresh blood and new ideas of the private sector.
The combination has struck so well that it has landed with a great amount of net income every year which further increases the stock value of PSUs.
The increase in the market value of the stocks of PSU will persuade people to look into the scheme of things and invest in the stocks of PSU.
The investments, directly or indirectly, help Nifty to grow as well. So for Nifty to ride back up, PSU Banks will play a great part as long as they are earning consistent profits!