PSU stocks rally even as broader market declines

BSE PSU index is up on Thursday trading at 6464 levels even as the broader market Sensex is down by 0.67 per cent trading at 26852 levels. 

Stocks like MMTC, Hindustan Copper, SAIL, J&K Bank, HMT, Oriental Bank, PNB, Neyville Lignite, MTNL, NALCO, Andhra Bank, Oil India, Indian Overseas Bank, Uco Bank, Bank of India, REC Ltd., Chennai Petro, SCI, Syndicate Bank, NTPC and ONGC are all up anywhere between 1.5 per cent to 14 per cent.

Revival in economy reflected in the latest GDP data  and the Finance Minister's various steps taken to revive the ailing public sector banks is getting reflected in the stock prices for various PSU banks and also in other public sector undertakings.  Buy back announcements and dividend distribution for public sector companies do make the PSU stocks attractive.  Government has recently made it mandatory for PSU companies with excess cash in hand to buy back shares and distribute dividends making it attractive for investors to hold public sector undertaking stocks.

MMTC is trading up by almost 16 per cent on an intra-day basis. Hindustan Copper with gains of almost 12 per cent and Steel Authority of India (SAIL) with gains of almost 7 per cent are the leading contributors to the BSE PSU index. MMTC and Hindustan Copper are reflecting the estimated improvement in commodity prices which have hit the  bottom recently. 

MOIL, NHPC & BHEL are the few index constituents trading in the negative when other constituents are trading in green.