BSE Sensex from 60,000 to 70,000: How PSU stocks took the lead over Reliance, Adani Group & Tata in wealth creation

State-owned companies have played a significant role in the BSE Sensex reaching the milestone of 70,000 points. The market capitalization of listed government assets almost doubled to around Rs 46.4 lakh crore for the final 10,000 points addition to Sensex. This surge in value has outperformed even leading private companies like Tata Group, Reliance, and the Adani Group.
According to an ET analysis, during the 551 trading sessions it took for the Sensex to reach this milestone, the share of state-owned companies in India’s total market capitalisation increased to approximately 13%. This reflects investor confidence in the government’s reforms-driven agenda for state companies in sectors such as banking, insurance, infrastructure, and manufacturing. Value purchasing has also contributed to this positive trend.

In contrast, the market value of the Tata Group increased from Rs 22.48 lakh crore to Rs 27.41 lakh crore since September 24, 2021, when the index stood at 60,000 points. Reliance Industries saw its market value rise from Rs 16.87 lakh crore to Rs 18.61 lakh crore. The Adani Group’s market capitalisation also rose from Rs 9.78 lakh crore to Rs 14.37 lakh crore.

According to Manish Chowdhury, head of research at StoxBox, the proactive and positive government initiatives have restored investor confidence in PSU stocks. Additionally, a sharper focus on operational efficiencies, improved execution capabilities, and a distinct move toward professional management have instilled a sense of assurance among market participants, he said.
Public sector companies have collectively added nearly Rs 26.25 lakh crore in market capitalisation, including Rs 5.4 lakh crore contributed by newly listed companies like LIC and IREDA. Among the state-owned companies, 21 have witnessed a surge in their market value by three times or more since September 24, 2021, while another 19 have at least doubled in value.

Pradeep Gupta, vice-chairman at Anand Rathi Group, highlighted that the search for relative value in a rapidly rising market seems to be one of the important reasons for the strong performance of PSU stocks in the recent past. This is because most of them were trading at a significant discount to the private sector, he said.