BSE PSU Index Hits 52-Week High as BHEL, CPCL and MRPL Rally Up to 17% in a Week

The BSE PSU Index reached a 52-week high of 20,623 on Friday, driven by gains in PSU banks and select state-owned firms. This marked a new high, surpassing the previous level of 20,612 recorded in December 2024. Over the past week, the PSU index rose 1.5%, while the BSE Sensex slipped 0.4%, reflecting strong investor confidence in public sector stocks.

Top Gainers of the Week

In the last week, shares of Chennai Petroleum Corporation (CPCL), Mangalore Refinery and Petrochemicals (MRPL), Bharat Heavy Electricals (BHEL), HPCL, IOCL, BPCL, and SAIL gained between 6% and 17%. CPCL shares touched a new 52-week high of ₹919.70, climbing 23% in the last 6 sessions on the back of strong quarterly results.

Strong Q2 FY26 Results Fuel PSU Rally

Public sector enterprises reported strong earnings in Q2FY26, driving market optimism. CPCL posted an impressive ₹732 crore profit, compared to a ₹629 crore loss last year, with a Gross Refining Margin (GRM) improvement to $9.04 per barrel from –$1.63. The company achieved a crude throughput of 3.013 MMT, marking 114% capacity utilisation, showcasing operational efficiency.

Read More, Reliance Jio Adds Over 32 Lakh Mobile Subscribers in September!

PSU Banks Post Robust Performance

Canara Bank share price surged to a multi-year high of ₹136.10, up 6% in 2 days after posting a 19% YoY rise in net profit to ₹4,773.9 crore. The bank reported improved asset quality, with GNPA at 2.35% and NNPA at 0.54%, while PCR rose to 93.6%. 

BHEL continued its rally, gaining 15% in a week after announcing strong Q2 results. 

Conclusion

The strong performance of PSU stocks highlights renewed investor confidence in India’s public sector enterprises. With solid Q2 results, improved margins, and large order books, PSUs, especially in the banking and energy sectors are well-positioned for continued growth in the coming quarters.

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