Firmly behind the curve: PSUs became the biggest laggards on Indian bourses

Market cap of government companies has remained unchanged in the past 8 years

India’s listed public sector undertakings (PSUs) continue to be laggards on the bourses, despite a strong rally in the broader markets since March last year.

The BSE PSU index has gained 29 per cent since March 2020, against a 61 per cent rally in the Sensex. The PSU index is yet to return to pre-Covid high, unlike the rest of the market. It is still down 12.4 per cent over the past 12 months against a 16.4 per cent rise in the benchmark index during the period.

The PSU index closed on Wednesday at 5,751, down from 6,567 at the end of