Play safe with PSU stocks ahead of Budget despite divestment trigger

Among the stocks that comprise the Nifty CPSE index, seven have recorded negative returns during the fiscal

Shares of most Central Public Sector Enterprises (CPSEs) have remained under pressure thus far in the financial year 2019-2020 (FY20) with the Nifty CPSE index slipping 20 per cent. In comparison, the benchmark Nifty 50 index has gained 5 per cent during the period. The index’s underperformance, analysts say, has been on account of likely delays in stake sale by the government in select public sector undertakings (PSUs).

The NIFTY CPSE Index has been constructed to facilitate government’s initiative to disinvest some of its stake in selected CPSEs. Except Bharat Electronics and SJVN Limited that have gained 5 per cent