Public Sector Undertakings Rally on Dividend Announcements, Value Buy Inflows

Shares of several Public Sector Undertakings (PSUs) experienced notable gains today as firms including ONGC and Coal India declared interim dividends amidst stable operational performance. Investor enthusiasm was driven by anticipated cash returns in a market grappling with trade-related uncertainties and broader economic volatility.

The dividend announcements represent strong balance sheet positions and steady cash flow generation within these firms, making them attractive amid fluctuating private sector valuations. Market participation from both institutional and retail investors favored these large-cap PSUs, contributing to their outperformance relative to broader indices.

Analysts interpret this rally as a reaffirmation of PSUs’ role as defensive plays with predictable income streams, particularly in a landscape shaken by tariff shocks and global supply chain disruptions. The value buying trend in this segment suggests confidence in government support and sustained capex in infrastructure and energy sectors. This momentum further highlights the appeal of dividend yields as an anchor for investors seeking income stability amid equity market turbulence.