The Trust vote Potluck

The Hindu reports that the recent political tussle, which ended with the incumbent government winning the Trust vote on July 22, has left the Union Government richer by Rs 86,600 crore, at least on paper.

With stock prices of listed PSUs rallying strongly over the past two weeks, the market value of the Government’s equity stakes in these companies has shot up sharply. Stocks of State-owned companies have been propelled by expectations that, with the Trust vote out of the way, the Government may push through with its divestment programme and put a portion of its stakes in these companies on the block.