Here's why Nippon India MF's Sanjay Parekh is positive on these PSU stocks

Sanjay Parekh, Senior Equity Fund Manager at Nippon India Mutual Fund, on Monday said that he prefers public sector undertaking (PSU) companies in sectors like oil and refining, transmission and shipyards.

Speaking in an interview to CNBC-TV18, he said, “We would be selective; there are oil and refining companies, some shipyards, the transmission companies. So there are selective good PSUs which has strong capabilities, mediocre growth and good dividend yields – that’s the combination we look at when we invest in this.”

On CPSEs, he said, “It looks like the government now has a clear focus to create value via central public sector enterprises (CPSE) companies.”