The Hindu Business Line : PSU index outperforms peers on Budget expectations

MUMBAI: Shares of public sector companies outperformed private sector firms last week, riding on expectations from the Union Budget, in spite of the broad market remaining jittery ahead of the event.

The Bombay Stock Exchange's public sector undertaking (PSU) index gave best returns among the dozen other sectoral indices during the week ended July 5, in the run-up to the Budget presentation.

Among the 13 sectoral indices, the PSU index, which includes companies such as GAIL, BPCL, HPCL, IOCL and MTNL, gave 2.07 per cent returns for the week ended July 5. The PSU index ended the week at 8,226.83 points as against 8,059.77 points on June 29.

Market men said that the PSU stocks had been gaining on expectations of the road map for disinvestment being unveiled in the Budget and other reforms to be initiated by the UPA government.

The Finance Minister, Mr Pranab Mukherjee will table the Union Budget in Parliament on Monday. Last week, the market was volatile and the benchmark index Sensex gave a return of nearly one per cent to end the week at 14,913.05 points. - PTI

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