Public sector stocks have taken centre stage in FY26’s market rally. The BSE PSU Index has surged 8.76%, outpacing the Sensex’s 5.61% gain. And this outperformance isn’t just driven by a handful of names—39 out of 63 PSU stocks have gained over 10% so far this financial year.
To understand where the smart money is flowing, we analysed June 2025 shareholding data for 53 listed PSU companies, focusing on where both Foreign Institutional Investors (FIIs) and mutual funds have increased stakes. Such dual institutional interest is uncommon—and typically seen as a strong vote of confidence.
We found 8 PSU stocks where both FIIs and domestic mutual funds have raised their holdings. Notably, 7 of these have already delivered strong stock price returns, with one rising 65% in under four months. (Source: ACE Equity)
