Trump tariffs on India, H-1B Visa fee hike: In the wake of 100% Trump’s tariffs on pharma imports and the H-1B visa fee hike, market experts are suggesting that domestic equity investors look at state-owned companies listed in the Indian stock market. They said that PSU stocks are driven by domestic demand, have little or negligible exposure to FIIs, and are available at attractive valuations. However, they maintained that defence stocks are trading at high valuations, but banking, NBFC, OMCs, and other PSU segments are full of value picks.
Why are experts bullish on PSU stocks?
Highlighting the reason for being bullish on PSU stocks amid Trump’s tariffs and H-1B visa fee hike concerns, Avinash Gorakshkar, a SEBI-registered fundamental analyst, said, “PSU stocks are available at an attractive PE multiple after the recent market rout. Most importantly, it is driven by the domestic demand and completely insulated from Trump’s tariffs and H-1B visa fee hike-type international triggers.”
Free from FIIs’ sell-off
Highlighting the PSU stock features that make it attractive amid FIIs’ selling, Anshul Jain, Head of Research at Lakshmishree Investment, said, “FII’s holding in PSU stocks are negligible and hence it is free from FIIs’ selling. As PSU stocks have strong fundamentals and they are insulated by global triggers like FII’s selling, Trump’s tariffs, and H-1V Visa fee hike, etc., one can bet on PSU stocks in the current market scenario.”
Segment to look at
On PSU segments that can be scanned for value picks, Avinash Gorakshkar said, “The defence segment is at higher valuations, but stocks like HAL and BEL are still available at attractive valuations. One can look at PSU banking, PSU NBFC, PSU oil and other PSU segments for value picks.”
PSU stocks to buy today
Asked about the PSU stocks to buy today, Avinash Gorakshkar said, “SBI, BOB, Canara Bank, PNB, ONGC, Oil India, HPCL, BPCL, IOC, BEL, and HAL are some of those PSU stocks that have strong fundamentals and are available at discounted prices against the market valuations.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
