The government plays a crucial role in the creation of national wealth, making the country more competitive in the global market. Engaged in various sectors such as finance, coal, infrastructure, oil, power, and banking, the government has established Public Sector Undertakings (PSUs) focused on social welfare. These government stocks are listed on the stock exchange, offering investors opportunities for strategic investments
Government 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..
So, if you’re looking for stocks that will help you diversify your portfolio to reduce the risk, check out the top 10 government stocks that are the most sought-after stocks to invest in India.
Types of Government Companies in the Share Market
| S No. | List of Top Government Stocks | Sector |
| 1. | NTPC Ltd. | Energy |
| 2. | Oil and Natural Gas Corporation (ONGC) | Energy and Oil |
| 3. | Power Grid Corporation of India Ltd. (PGCIL) | Energy |
| 4. | Coal India Ltd. (CIL) | Mining |
| 5. | Indian Railway Catering and Tourism Corporation (IRCTC) | Railways and Tourism |
| 6. | Bharat Electronics Ltd. (BEL) | Defense and Aerospace |
| 7. | Indian Oil Corporation (IOC) | Energy and Oil |
| 8. | Indian Railway Finance Corporation Ltd. (IRFC) | Financial Services |
| 9. | Hindustan Aeronautics Ltd. (HAL) | Defense and Aerospace |
| 10. | Power Finance Corporation Ltd. (PFC) | Energy |
1. NTPC Ltd.
NTPC Limited is engaged in generation of electricity. The Company is engaged in generation and sale of bulk power to state power utilities.
This Maharatna company is India’s biggest power generation firm. NTPC accounts for almost 25% of India’s total power generation. It has a capacity of 73,874 MW, comprising mainly coal and gas-based power plants. However, by 2032, it aims to ramp up its non-fossil-fuel-based generation capacity to nearly 50% of its portfolio.
2. Oil and Natural Gas Corporation (ONGC)
Oil and Natural Gas Corporation Limited is a global energy holding company. The Company is engaged in the exploration, development and production of crude oil and natural gas.
ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production History[1] ONGC was established in 1956 by the Government of India for oil exploration. With 60+ years of oil exploration, ONGC has discovered 8 out of 9 producing basins of India: 1958 at Gujarat, 1963 at Assam, 1967 at Rajasthan, 1974 at Mumbai, 1980 at Krishna Godavari, 1985 at Cauvery, 2019 at Bengal & 2022 at Vindhyan.
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3. Power Grid Corporation of India Ltd. (PGCIL)
Power Grid Corporation of India Limited is a transmission company engaged in the power transmission business with responsibility for planning, implementation, operation and maintenance of Inter-State Transmission System.
Power Grid is India’s national electricity transmission utility. PGCIL operates millions of kilometers of transmission lines and hundreds of substations. It also has a telecom network and provides consultancy services to nearly two dozen countries worldwide.
4. Coal India Ltd. (CIL)
Coal India Limited (CIL) is a holding company. The Company is engaged in the production and sale of coal. It serves power and steel sectors, as well as cement, fertilizer, brick and kilns industries, among others.
Coal India Ltd is mainly engaged in mining and production of Coal and also operates Coal washeries. The major consumers of the company are power and steel sectors. Consumers from other sectors include cement, fertilizers, brick kilns etc. A Maharatna company Coal India was incorporated in 1973 as Coal Mines Authority Ltd after the nationalization of the coal sector. [1] It is a ‘Maharatna’ company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal.
5. Indian Railway Catering and Tourism Corporation (IRCTC)
Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is one of the largest and most trusted travel services providers in India. Established in 1999, IRCTC has grown to become a major player in the travel and tourism industry. The company is headquartered in New Delhi and offers a wide range of services, including online ticketing, catering, tourism, and e-catering.
It is the only authorized online ticketing partner of Indian Railways and provides services to more than 10 million passengers every day. IRCTC also provides catering services to more than 8,000 trains and runs more than 1,000 tourist trains across India. The company’s top products include rail tickets, catering services, and tourism packages. IRCTC also offers a range of popular brands such as the IRCTC Air, IRCTC Rail, IRCTC Hotels, IRCTC Tours, and IRCTC Holidays.
6. Bharat Electronics Ltd. (BEL)
Bharat Electronics Limited is engaged in design, manufacture and supply of electronics products/systems for defense as well as for nondefense markets. The Company’s principal products include weapon systems, radar and fire control systems etc.
Bharat Electronics Ltd (BEL) is an Indian state-owned aerospace and defence company incorporated in 1954. BEL is headquartered in Bengaluru, India and is engaged in the design, development, manufacture, and supply of a wide range of products and services in the areas of defence and strategic electronics, naval systems, radars, electronic warfare, homeland security, telecommunications, sound and vision broadcasting, opto-electronics, tank electronics and solar photovoltaic systems.
7. Indian Oil Corporation (IOC)
Indian Oil Corporation Ltd (IOCL) is India’s largest commercial enterprise and the leading oil and gas company. Indian Oil Corporation Limited is engaged in refining business. The Company’s segments include Sale of Petroleum Products, Sale of Petrochemicals and Other businesses.
IOCL operates in the fields of refining, pipeline transportation and marketing of petroleum products, natural gas and petrochemicals. Its product range includes petrol, diesel, lubricants, kerosene, aviation turbine fuel, liquefied petroleum gas, naphtha, bitumen, petrochemical feedstock, paraffin wax, sulphur and other petroleum products. IOCL’s popular brands include XTRAPREMIUM, XTRAPOWER, SERVO, INDANE, XTRAMILE and XTRAPRIDE.
8. Indian Railway Finance Corporation Ltd (IRFC)
Indian Railways, the Ministry of Railways, and the Government of India own the Indian Railway Finance Corporation (IRFC). Across capital markets and other borrowings, it generates funds for expansion and operation.
Since its incorporation in December 1986, IRFC has provided financing for the acquisition and creation of assets, leasing them out to Indian Railways as finance lease for a certain period of time. In FY2020, the company presented an impressive contribution of 39.38% of the actual capital expenditure of the Indian Railways, which was Rs. 525.35 billion. IRFC follows a financial leasing model of 30 year period for Rolling Stock Assets lending and Project Assets.
9. Hindustan Aeronautics Ltd. (HAL)
Hindustan Aeronautics is an Indian state-owned aerospace and defance company. Incorporated in 1940, HAL is India’s largest defance public sector undertaking (DPSU) and has been involved in the production of a wide range of military aircraft, helicopters and their spare parts.
HAL’s operations span across 10 different lines of business, including aircraft, helicopters, aero-engines, avionics, aerospace components, missiles, electronic warfare systems, defence electronics, defence transport aircraft, and civil aerospace. The company produces a range of products, including the Light Combat Aircraft (LCA) Tejas, Hawk Advanced Jet Trainers, Dhruv Advanced Light Helicopters (ALH), Light Combat Helicopters (LCH), and the Sukhoi Su-30MKI fighter jets.
10. Power Finance Corporation Ltd. (PFC)
PFC and its subsidiary Rural Electrification Corp provide the financial backbone to India’s power sector. The two non-banking finance companies offer loans and consulting services to state and central power utilities, private-sector developers and state governments for generation, transmission, distribution and system improvement projects.
PFC’s operations are spread across various lines of business, such as power, renewable energy, coal, oil & gas, and other infrastructure projects. It also provides services such as project finance, corporate finance, venture capital, and asset management. Its top products include term loans, working capital loans, and project finance loans. Its popular brands include PFC Energy, PFC Capital, and PFC Infrastructure.