All the top five gainers on the BSE are PSUs, led by MMTC (up over 15%), Hind Copper (up 12%), J&K Bank (up 6.5%), SAIL (up over 6%) and IFCI (up 5%). Other PSUs like GMDC, Neyvelli, REC, MTNL, SJVN and many banks are all up in the green. The S&P BSE PSU Index is up over 1%. Out of a total of 57 stocks in this index, 54 are trending in the positive.

These PSU stocks are up due to various reasons – anticipation of buyback, stake sale and more importantly, an overall sense of optimism, a feeling of good tidings coming their way. NMDC and MOIL just approved buyback upto 25% of floating stock and both announced prices at a premium to the previous day’s closing price. For FY17, the target through divestment is Rs.56,500 crore of which Rs.6400 crore is targeted for before 30th Sept’16.

Maybe the PMs visit to the five countries or the new set of guidelines on capital restructuring of PSUs, which came into effect from 1st April 2016 is also causing this sudden spike up of interest on PSU counters. They have been beaten down relentlessly for some time now and it is probably bargain hunters in this bad market, looking for value stocks in the PSUs.