Mumbai | 6-Oct-2025, 16:45 IST —
Filed on 6-Oct-2025, 16:15 IST via NSE/BSE trade data
Public sector undertakings (PSUs) across rail, defence, and power segments extended gains on Monday as a string of fresh order announcements lifted investor sentiment. The Nifty PSU index advanced 1.8%, outperforming the benchmarks, with BHEL, IRCON International, and RVNL closing near their intraday highs.
Market Drivers
- NBCC order inflow: State-owned project consultancy firm NBCC reported fresh project awards, improving visibility on its execution pipeline.
- BEL defence push: Bharat Electronics Ltd (BEL) announced new defence contracts, reinforcing momentum in the aerospace and radar systems vertical.
- Railways strength: Railway PSUs including IRCON and RVNL surged as traders bet on sustained order flows from ongoing infrastructure expansion.
By the Numbers
| Index / Stock |
Close | Change | % Move |
|---|---|---|---|
| Nifty PSU Index | 12,945 | +230 | +1.8% |
| BHEL | ₹254 | +3.1% | — |
| IRCON Intl | ₹195 | +2.9% | — |
| RVNL | ₹264 | +2.5% | — |
| BEL | ₹242 | +2.3% | — |
Broader Sentiment
Apart from stock-specific triggers, traders pointed to steady ETF inflows into PSU-themed funds as a key support. These flows have helped sustain momentum in government-owned enterprises even during bouts of market volatility.
Brokerages also highlighted that the PSU basket continues to benefit from capex visibility, especially in railways and defence, where the government has maintained a strong spending commitment.
Outlook — What to Watch
- Order book updates: October is expected to bring fresh disclosures from rail and defence PSUs, adding to the tender pipeline.
- Q2 earnings guidance: Investors will closely monitor management commentary on capex timelines and execution schedules during quarterly briefings.
- Policy cues: With government spending focus on infrastructure and defence modernisation, PSU stocks may continue to attract medium-term flows.
