Despite the boom in the stock market, the government has completely failed in the field of disinvestment

New delhi date. 31 December 2020, Thursday

The government is concerned that the target of raising Rs 2.10 lakh crore through disinvestment in the current financial year is unlikely to be achieved. Out of Rs 2.10 lakh crore, Rs 20,000 crore was planned to be raised through the sale of some stake in LIC and IDBI Bank, which is doubtful to be achieved in the current year.

Despite the boom in the country's stock markets during the Corona era, the government does not appear to be able to meet its disinvestment target, which is surprising, an analyst said. In the year 2020, the BSE Sensex has closed with a growth of 12%. The government has failed to take advantage of high valuations.

The government also intends to reduce its stake in Air India, BPCL in the current financial year. Which does not seem possible at present.

Due to political hurdles and lack of response to sales at the beginning of the financial year, the central government has not been able to aggressively pursue the disinvestment program.

From the beginning of 2021, the government wants to move ahead with the disinvestment program so that the fiscal pressures caused by Corona can be eased in a timely manner. The government has so far managed to raise only Rs 15 crore through disinvestment against the target of Rs 2.10 lakh crore in the current financial year. Some of the initiatives in which the government wants to disinvest are already listed on the stock exchanges and the current boom has seen its prices go up.

Compared to government undertakings, private sector companies have raised twice as much through sales of equities in the year 2020 as compared to 2016. Domestic companies have raised Rs 1.50 lakh crore through equity markets, according to a report.

In 2020, the Sensex rose 12 per cent and the Nifty 15 per cent

Ahmedabad. 31 December 2020, Thursday

The year 2020 has proved to be a tumultuous year for the Indian stock market. Even amid the turmoil, Indian stock markets reached record highs. After hitting the bottom of the market in March, it has risen by more than 30 per cent during the year. On an annual basis, the Sensex has gained 12 per cent and the Nifty 15 per cent.

During the year, the BSE-500 index rose 12 per cent, while the small-cap index rose 3 per cent and the mid-cap index rose 20 per cent. During the year, foreign investors pumped Rs 1.5 lakh crore into the Indian stock market.