In a recent market commentary, Anand Rathi, senior equity strategist at Anand Rathi, highlighted three public sector units priced below ₹200 as attractive short‑term plays. The picks—NHPC, Indian Oil Corp (IOC) and NBCC—align with the broader market tilt toward infrastructure and energy, sectors that have been rallying as the RBI’s policy stance remains accommodative. NHPC, the hydroelectric PSU, has benefited from the government's push for renewable capacity, with a 10% YoY increase in revenue last quarter. IOC, India's largest oil marketing company, is positioned to ride the tailwinds of higher crude prices and a rebound in domestic demand.
NBCC, a construction firm, has secured several large infrastructure contracts, boosting its earnings outlook. The trio’s valuation metrics are attractive, with all three trading at a price‑to‑earnings ratio below 15, well under the Nifty 50 average of 20. If the market continues its bullish stance on PSUs, these stocks could lift the broader index, especially as the Sensex has shown a 5% gain in the last month on policy optimism. Retail investors should note that while the upside is compelling, the short‑term nature of the recommendation warrants a disciplined approach.
Setting a stop‑loss at 5–7% below the entry price can help manage downside risk, and investors should monitor quarterly earnings releases for any material surprises. Diversification across sectors remains key to mitigating volatility in a market still sensitive to global commodity shocks.