PSU Stocks

What are PSU Stocks?

PSU stands for Public Sector Undertaking. PSU stocks are shares of companies that are majority-owned (at least 51%) by the Indian government. These companies are established with the aim of providing essential goods and services to the public while also contributing to the country's economic development. Some key sectors with prominent PSUs include:

• Energy (Oil & Natural Gas Corporation, Coal India)
• Banking (State Bank of India, Punjab National Bank)
• Insurance (Life Insurance Corporation of India)
• Infrastructure (Power Grid Corporation, Rail Vikas Nigam Limited)
• Manufacturing (Bharat Heavy Electricals Limited, Steel Authority of India)

How Many PSU Stocks are There in India?

As of April, 2024, India has numerous PSU stocks listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The exact number may vary over time due to mergers, acquisitions, and privatization efforts undertaken by the government.

Which is the Largest PSU in India?

The largest PSU in India is typically determined by market capitalization (total market value of outstanding shares). As of April 2024, some of the contenders for this title include:

• State Bank of India
• Life Insurance Corporation of India

How to Invest in PSU Stocks?

You can invest in PSU stocks through a brokerage account similar to investing in any other publicly traded company. Here's a general process:

1. Open a demat account and trading account with a broker.
2. Deposit funds into your trading account.
3. Research and select the PSU stocks you want to invest in.
4. Place a buy order through your broker's platform.

Are PSU Stocks Safe?

PSU stocks can offer some advantages like:

• Stability: Many PSUs are established players in their sectors, offering a degree of stability compared to some private companies.
• Dividends: PSUs are often known for paying regular dividends, providing a steady income stream for investors.

However, PSU stocks also have some drawbacks to consider:

• Government Influence: Government policies and decisions can significantly impact PSU performance.
• Lower Growth Potential: PSUs may not always exhibit the same growth potential as some private sector companies.