Improving business prospects, divestment make analysts bullish on PSU stks

In the last 10 years, though PSU stocks have gained ground, they have mostly been laggards at the bourses

Stocks of public sector companies, especially the oil refining and marketing companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOC) – logged gains on Tuesday in a weak market. While the Nifty lost nearly 1 per cent in trade on Tuesday, the Nifty CPSE index – a gauge of performance of central public sector enterprises on the National Stock Exchange (NSE) – gained over 3 per cent in intraday trade.

The rally in PSU stocks comes on the back of the BPCL Chairman, Arun Kumar Singh suggesting in the company’s