S&P BSE PSU Index: Price, Performance, and Government Push
The S&P BSE PSU Index (Public Sector Undertakings) tracks the performance of Public Sector Undertaking (PSU) companies listed on the Bombay Stock Exchange (BSE). This index is a key indicator of market sentiment towards government-owned entities and reflects the impact of government policies, particularly disinvestment and capital expenditure.
Today's S&P BSE PSU Index Price
The BSE PSU index showed strong growth, closing higher in a broad market rally.
| Metric |
Value |
Change |
| Closing Value (26 Nov 2025) |
20,497.88 |
$\approx +1.07\%$ (Up from previous close) |
| Previous Close |
20,279.96 |
- |
| Day's High/Low |
20,561.22 / 20,323.29 |
- |
| 52 Week High/Low |
20,846.31 / 15,647.00 |
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The strong daily performance, with a gain of over $1.0\%$, indicates high investor confidence in the PSU sector, driven by positive corporate announcements and the expectation of continued government focus on capital expenditure.
S&P BSE PSU Index Historical Returns
The BSE PSU index has delivered exceptionally high returns in recent years, outperforming the broader market over the short to medium term.
| Period |
Return (CAGR/Absolute) |
Performance Note |
| 1 Year |
$\approx +5.71\%$ |
Indicates some consolidation after a sharp rally. |
| 3 Years |
$\approx +104.58\%$ (Absolute) |
Spectacular performance, more than doubling in value. |
| 5 Years |
$\approx +286.58\%$ (Absolute) |
Massive wealth creation, significantly outpacing Nifty 50/Sensex. |
Note: The high absolute returns over 3 and 5 years highlight the multi-year rally witnessed in public sector stocks, fueled by improving balance sheets, attractive valuations, and the government's renewed focus on strategic disinvestment and operational efficiency.
Key BSE PSU News and Sector Performance
The BSE PSU index comprises a diversified group of companies spanning several sectors, with major weightage in Banks, Aerospace & Defence, Power Generation & Distribution, and Finance companies.
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Sectoral Strength: The rally today was led by the PSU Banks and select Defense/Capital Goods stocks, which benefited from large-scale government-backed projects and improving asset quality.
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Government Focus and Disinvestment: Continued speculation and official announcements regarding strategic sales and stake dilution (disinvestment) in certain PSU entities often drive short-term price movements. The potential for a BSE PSU Fund or ETF is high, as the government continues to use the ETF route (like the CPSE ETF) to facilitate its disinvestment program.
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Attractive Valuation: Despite the sharp run-up, the sector is still viewed as having attractive valuations compared to its private-sector counterparts, with a P/E ratio around 11.64 and a strong average Dividend Yield of approximately $2.52\%$.
Top 5 Major Constituents in BSE PSU Index (by Market Cap):
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State Bank of India (SBI)
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Life Insurance Corporation of India (LIC)
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NTPC Ltd.
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Oil & Natural Gas Corporation Ltd (ONGC)
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Hindustan Aeronautics Ltd (HAL)