PSU Stocks Comeback: Short-Term Rally or Long-Term Opportunity?
Antara Bhattacharyya
The Sudden Surge in PSU Stocks: Government-backed companies are seeing renewed investor interest, driven by strong earnings, policy reforms, and improved visibility into capital expenditure.
Role of Government Reforms: Strategic disinvestment, asset monetization, and policy clarity have strengthened balance sheets, improving investor confidence in Public Sector Undertakings.
Attractive Valuations and Dividends: Many PSU Stocks still trade at reasonable valuations, offering stable dividend yields compared to volatile private sector peers.
Sectoral Leaders Driving Momentum: Banking, defense, energy, and infrastructure PSUs are leading gains, benefiting from credit growth, export orders, and capex cycles.
Rally or Long-Term Opportunity?: Sustained earnings growth and governance reforms could support long-term wealth creation, but macro risks may trigger short-term volatility.