Best Government Stocks

Introduction

The government shares list is a list that contains the names of all the projects that are initiated by the government for social welfare. The shares of the entities mentioned in the government shares list are sold in the stock market. One of the most important aspects of a State is its government. It acts as the superior body for decision-making and leads the State in a beneficial direction. Various responsibilities are attached to this governing body, such as healthcare, defense, etc. One of the most important responsibilities that the Government holds is the development of the national economy. India is one of the largest global economies, and needless to say, this country entertains one of the most sought-after markets. The undertakings that work under the government are mentioned in the government company shares list. 

What are Government Shares/Stocks?

Government shares/stocks are representations of the portion of a company or a PSU owned and operated by the Government. Public-sector undertakings are projects in which the Government holds the majority stakes, such as ONGC. These companies are mentioned in the government shares list. 
For any investor looking to improve their portfolio, investing in government stocks is just the right move to make. They guarantee returns on the invested principal amount despite underperformance in the market. The companies that are on the government shares list are regularly open for investments on stock exchanges such as the NSE and BSE.

Types of Government Companies in the Share Market

Here we shall discuss the kinds of government companies in the government shares list and price menu that are available for trading in the market.  

CPSEs or Central Public Sector Enterprises

CPSEs are undertakings in which more than 51% of the shares are either owned by the central government or any other CPSE. These CPSEs are of two kinds: strategic and non-strategic. Defense-related businesses, railways, and atomic energy are all strategic entities, and the remaining fall under the non-strategic category. 

PSBs or Public Sector Banks

Public Sector Banks are financial institutions, banks, and insurance in which the government holds a stake of 51%  or more or any other PSB. Their main purpose is social welfare. Their shares are mentioned in the government stocks list in nse and are highly profitable.

SLPEs or State-Level Public Enterprises

The state government or any other SLPE holds the majority stake in these entities. They are a vital part of public policy-making of the state. These SLPEs have developed significantly since the fifties. 

List of Best Government Stocks in India 2023

The meaning of government stocks has already been discussed above. Let us now review which are the best government stocks of 2023 in the table below. 

The list of government companies in stock market NSE are:

Overview of Best Government Share List Companies 2023

The companies mentioned in the list will always prove to be beneficial investments for those who are looking for long-term investments. All the information regarding the listed companies on the government share list nse 2023 can be found in this section. These are some of the best government stocks. Let us trace the essential information related to their share. Please note that past performance will never guarantee future performance.

ONGC

It is one of the largest PSUs in the government. A total of 80% of India’s natural gases and 64% of petroleum are supplied by the ONGC. It is regularly listed on the Bombay Stock Exchange as a constituent of the BSE SENSEX and also on the national stock exchange as a constituent of the S and P CNX NIFTY. As of 2023, the majority of stakes are owned by promoters, and the Government of India holds 10.23% of the shares. It is operating at a high of Rs.157.80 and a low of Rs.156.55 at a volume of 6,059,738. It is one of the most important companies in the government shares list. 

State Bank of India

It was founded on 1 July 1955 and descended from the Bank of Calcutta. On 14 September 2022, it became the seventh Indian company to cross the 5 trillion mark. It is one of the biggest and most prominent banks in India. State Bank of India is a government-owned bank and operates as a multinational financial services company. SBI's stock, according to the government shares list, is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol "SBIN." In the course of its work over the last couple of years, it has been able to establish its dominance over its competitors as the “dominant bank of India”. SBI is functioning currently at a high of Rs.569.45 and a low of Rs.562.55. Its current volume is 14,549,152. Historical data claims that SBI was, as of July 1999, operating at a high of 27.87 and a low of 22.09. Its 1999 volume was 1,915,942,815. 

Bharat Petroleum Corporation Ltd.

Bharat Petroleum Corporation Ltd. is a government-owned company involved in the refining, marketing, and distribution of petroleum products. It is also listed on the BSE and is operating at a current volume of 1,207,938. Currently is working at a high of Rs.375.05 and a low of Rs.371.50. 

Indian Oil Corporation Limited 

IOCL was founded in 1959. It is primarily owned by the government and is engaged in the refining of crude oil and distribution of petroleum products. It has a current high of Rs.92.60 and a low of Rs.91.20 at a volume of 9,394,894. 

GAIL (India) Ltd.

GAIL is another company on the government shares list. The company works through Transmission Services, Petrochemicals, Natural Gas Marketing, Liquid Hydrocarbons, and other segments. The company also produces wind and solar power. The company operates and owns approximately 14,500 km of natural gas pipeline. This company was established in 1984 and is based in New Delhi, India. Gail has a current high of Rs.108.70 and a low of Rs.106.75. Its volume is 11,218,628. Historical data shows its operation at a high of 10.61 and low of 7.02 at a volume of 34,792,410. 

Steel Authority of India Ltd.

Steel Authority of India Limited was founded in 1954 and is based in New Delhi, India. Steel Authority of India Limited, a steel-making company, manufactures and sells iron and steel products in India and internationally. It has a volume of 18,507,799. It is functioning at a high of Rs.87.05 and a low of Rs.85.35. 

NMDC

NMDC is an Indian public sector undertaking involved in the exploration of minerals. It was founded in 1984 with headquarters in Hyderabad. Its High is Rs.108.20, and its low is Rs.106.20. Its volume is 7,834,279.

IRCTC

Railways were brought into India by the Britishers during colonial rule, mainly with the purpose of more efficient transportation and hence easier trade for the Britishers. It was established in India as a ministry in 1999 and since then has been one of the most prominent PSUs. Its high is Rs.670.90, and its low is Rs.660.20. Its volume is 1,519,178.

PNB

It was founded in May 1894 and currently is the third-largest Indian public sector bank. It has more than 180 million customers. It currently has a volume of 23,194,150, a high of Rs.52.25 and a low of Rs.51.45.

Union Bank Of India

Union Bank of India is one of the banks in the government shares list. UBI is an Indian public sector bank headquartered in Mumbai. It has about 120+ million customers and a total business of US$106 billion. After the merging with Corporation Bank and Andhra Bank, which came into effect on 1 April 2020, the merged entity became one of the largest PSU banks. it is working at a high of Rs.72, a low of Rs.70.25, and a volume of 7,743,663.

Best PSU Thematic Funds in India

As discussed above, PSUs which are listed on the government shares list are entities in which the government holds a majority. Thematic - PSUs are equities on the government share list nse for investment in the market that are “theme-based”. Such theme-based groups contain portfolios that are united by an idea. For e.g., a fund based on the building of a highway will have portfolios of cement, steel, and other related sectors. They offer more diversity and options in terms of investment; hence they are more broad-based than sectoral investments. 

Some of the best PSU - thematic funds on the government share list nse are:

How to Invest in Government Stocks/Shares?

Investment is a long-term systematic process, whether investing in government bonds or mutual funds. To make an investment in any kind of share, it is important to have enough knowledge about the company and its working. Hence, the data on government companies is high in demand, which the government share list and price can provide with. Before making any kind of investment, it is important to be registered with SEBI and have a Demat account. The purpose of opening this dematerialized account is to digitally maintain a record of the shares purchased by an individual. This process is online and can be finished within 10 - 15 minutes. 

Investments in government stocks/shares specifically can be made in the following ways:

Gilt Funds

These are debt funds issued for investments in central or state government bonds and other such interest-bearing securities. Such bonds are known to possess minimal risk as the investment lies with the government. 
Gilts are purchased through a stock broker or a bank, or the DMOs service. Some of the best-gilt funds to invest in are SBI mutual fund and ICICI prudential gilt fund. As per the SEBI rules, 80% of these funds’ acquisition will rest with the government.  

Direct Investment

Another way to invest in government shares is through direct investment. It is an investment that is made by the investor without the help or interference of a middleman such as an agent. For direct investment, it is important to have a Demat account, after which you can proceed to make investments. 

RBI Retail Direct

Introduced last year in November, this is a good platform to make investments in government bonds. It was launched to improve the retailers' access to the government stock market and to open their gilt retail accounts directly with the RBI. All the steps for opening such an account with RBI are listed on the official website of the bank. Opening an account with RBI has some benefits in the sense no extra charge needs to be paid for opening and maintaining the account. 

Conclusion

Investing your money in any kind of stock is a really good way to ensure that your finances are safe and multiplying. For retirement, if planned properly, investing your money in government bonds can prove to be one of the safest retirement plans. However, the data on the government shares list and price is ever-changing depending upon the market. While government bonds do not contain a credit rate risk, they face another danger of interest rate risk. The bonds mentioned in the government shares list are highly influenced by changing interest rates and should be invested in after thoughtful analysis, as selling these bonds before maturity can lead to losses. 

FAQs

1. Is it good to invest in government stocks?

Stocks mentioned in the government share list and price are owned by either the central or the state government, the risk rate is low, and it also provides attractive dividends to the investors, thereby attracting maximum attention from people who are looking to invest.

2. Can we buy government shares?                        

Following the opening of a Demat account, a person can invest in any kind of share, including government shares, after selecting one from the government share list and price. 

3. Is it risky to invest in government shares?                     

They contain lower risks as compared to other equities as they are directly promised returns by the government.