Analysts bullish on banks, defence-related plays in the PSU pack

The rally in PSU pack thus far in CY22 was mostly led by stocks from the banking and defence-related verticals, while those of oil & gas and metals & minerals did not contribute much

Stocks of public sector companies have had a good run at the bourses in the first nine months of calendar year 2022 (CY22), with the S&P BSE PSU index rising almost 14 per cent during this period. In comparison, the S&P BSE Sensex gained a modest 3 per cent, data show.

Going forward, G Chokkalingam, founder and chief investment officer at Equinomics Research believes, the PSU index is unlikely to outperform the broader index by any significant margin. The performance of oil & gas