PSU stocks below Rs 50 shine; do you own any of them?

The BSE PSU index is up by more than 1 per cent on Thursday, outperforming the markets. The share price of IOB jumped higher by more than 7 per cent even as IOB is the top performing PSU stock on Thursday. Central Bank gained by more than 6 per cent, PNB jumped higher by ~6 per cent, Bank of Maharashtra is higher by more than 5 per cent, Union Bank is up by ~5 per cent while UCO Bank has soared by more than 4 per cent and JK Bank is up by more than 3 per cent on Thursday, on an intraday basis. The share price of HUDCO is up by ~2 per cent.

The other PSU stocks that are seen outperforming markets on Thursday are SBI, Indian Bank and Bank of Baroda.

One of the reasons why banks, especially PSU banks are in focus on Thursday is that the finance minister is expected to announce ‘Sovereign Guarantee for BAD BANK’. The announcement is expected any time on Thursday and hence the banks are seen rallying on Thursday. The Bank Nifty is headed to close at record highs even as SBI share price is on the verge of closing at all time highs after a price volume breakout.