Marching in lockstep: PSU giants roar back, match Nifty's decade returns

Once left behind, PSU stocks close performance gap after 6-year slump

The stock market performance of public sector undertakings (PSUs) has recently caught up with the overall market following a sharp rise. Over the past decade, the returns for the benchmark National Stock Exchange Nifty 50 and the S&P BSE PSU Index are now nearly identical.

Between 2013-14 (FY14) and 2019-20, the Nifty 50 increased by 28 per cent, while the BSE PSU index declined by 30 per cent. This disparity has been addressed thanks to a fivefold increase in the BSE PSU index since March 2020. During the same period, the Nifty 50 has risen by 2.75