PFC, SBI, Hindustan Copper among 10 PSU stocks that delivered return upto 16% in 2026

NIFTY50 and SENSEX have got off to a shaky start in 2026. In just under two months into the new year, investors have seen multiple events unfold, like the global geopolitical issue of US-Venezuela and US-Iran, a record rise in precious metals like gold and silver amid high demand for safe-haven assets due to geopolitical and economic instability.

Besides this, the India-US and India-European Union trade deal, rise in STT for F&O in Union Budget 2026, relentless sell-off by foreign institutional investors (FIIs), and the Indian rupee falling to a record low against the dollar were among other key happenings.

All these market events had an impact on the domestic markets. As a result, benchmark indices have seen wide swings and high volatility. NIFTY50 and SENSEX declined by over 2% on Budget day, wiping out ₹11 lakh crore in market cap in a single day, but benchmark indices managed to recover some ground after the India-US trade agreement was announced on February 2.

Despite high market volatility, investors have shown a strong interest in Government-owned stocks. The NIFTY index tracking PSU stocks like the NIFTY PSE index and NIFTY PSU Bank has delivered 5.5% and 7.8% return so far this year, compared to the NIFTY50 fall of 0.59%.

Prominent PSU stocks with high YTD returns

Strong Q3 earnings by PSU banks

PSU banks like SBI, Union Bank of India, Bank of India and others have seen a strong rise in stock price following upbeat quarterly earnings. SBI posted its highest-ever standalone quarterly profit of ₹21,028 crore, up 24.4% YoY, driven by strong growth in core income, improvement in asset quality and one-time special dividend of ₹2,200 crore from its subsidiary SBI Mutual Fund.

Union Bank of India Q3 net profit surged 9% YoY to ₹5,017 crore, while Net interest income (NII) stood at ₹9,328 crore, up 1% YoY. Meanwhile, the Bank of India posted 7.4% YoY rise in net profit to ₹2,705 crore, while net interest income (NII) advanced 6.4% annually to ₹6,461 crore for the December quarter. All three banks have hit their respective 52-week high in 2026.

PFC-REC merger gives boost to share price

State-owned lender Power Finance Corporation (PFC) shares are in focus following the government announcement of the merger with Rural Electrification Corporation Ltd. (REC). Currently, PFC has 52.6% stake in REC, which the company acquired in March 2019 from the government for ₹14,500 crore. Following the merger, the combined entity will be the largest financier in the Indian power sector with a total loan book of around ₹11.5 lakh crore.

ONGC, Oil India share rise as crude oil prices surge

State-owned oil exploration and production stocks like ONGC and Oil India saw strong gains in the last few weeks amid a sharp rise in international oil prices. Rising geopolitical concerns and severe winter storms in the US have impacted the oil supply, leading to an over 11% surge in Brent Crude Oil prices. Rising oil prices are positive for upstream oil companies like ONGC, Oil India and others. ONGC shares have gained over 12.5%, while Oil India is up 15.3% respectively.

Hindustan Copper rises over 15.5% YTD

Hindustan Copper shares have gained the spotlight in the last few weeks amid a sharp rise in international copper prices. The stock hit a 52-week high of ₹760.05 apiece on 29 January. This surge has also come after the company was the preferred bidder for Baghwari-Khirkhori Copper and associated mineral block in Madhya Pradesh.

NTPC shares rise over 10% YTD

State-owned power giant NTPC Ltd shares saw a significant rise following the upbeat quarterly earnings and second interim dividend for FY26. In the third quarter, the company reported 5.8% YoY increase in net profit to ₹4,987 crore, while revenue for the quarter fell 1.8% year-on-year to ₹40,643 crore. The company’s board approved a second interim dividend of ₹2.75 per share.