Banks, OMCs drag PSU index 14% in CY18; analysts advise caution

Going ahead, analysts suggest investors be selective while investing in PSU stocks.

Shares of public sector undertakings (PSUs) have underperformed thus far in the calendar year 2018 (CY18). The BSE PSU index – a gauge to measure the performance of state-owned enterprises (SOE) – has slipped 14 per cent year-to-date (YTD), as compared to 4 per cent rise in the S&P BSE Sensex.

On the NSE, too, the Nifty PSE index has lost 11 per cent (YTD), as against a two per cent gain in the Nifty50.

Analysts attribute the underperformance to intermittent roadblocks / events in individual sectors such as non-performing assets (NPAs) in the banking space, rising oil prices that