Divestment news attracts investors to govt companies; PSU stocks gain

Half a dozen PSU stocks have gained over 15% each

With the rally playing out in the large-cap and mid-cap space, investors’ focus seems to have shifted to the public sector undertaking (PSU) pack. 

So far this month, the Nifty PSE index has gained 7.1 per cent, outperforming the benchmark Nifty, which has risen 3.5 per cent. 

Half a dozen government-owned companies have posted strong gains of over 15 per cent each. PFC, SAIL, and NTPC have been top gainers, with their stocks surging more than 20 per cent, supported by 

good volumes.

Besides ultra-low valuations, government action has spurred buying into this space, say experts.

“Several policy initiatives by the