S&P BSE PSU Index Stocks

The S&P BSE PSU index is designed to measure the performance of public sector undertakings (PSUs) as defined by BSE Ltd.

In 1951, there were five PSUs under the ownership of the government. By March 2021, the number of such government entities had increased to 365.

PSU stocks refer to shares of companies that are categorised as Central Public Sector Undertakings, which is the PSU full form in share market. These are government-owned corporations or enterprises that operate in various sectors, including energy, finance, manufacturing, and infrastructure.

Central public sector enterprises (CPSEs) are those companies in which the direct holding of the Central Government or other CPSEs is 51% or more. As on 31.3. 2015 there were 298 CPSEs wherein, 63 enterprises are yet to commence commercial operation.

Public sector companies are often considered to be safer investment options. A lot of investors want to invest in stocks that pay good dividends. Also, public sector companies are often considered to be safer investment options. Axis Securities recently listed PSU stocks that have high dividend yields.

The bonds are tradeable at the exchange and can be held easily in a demat account. These bonds are highly liquid. The government issues PSU bonds, and hence they have high credit ratings and are a very safe option for investment. They offer a regular fixed income to the holder.