PSU divestments worth Rs 6.6 lakh crore could attract foreign investors, says Axis Capital

Axis Capital has suggested that accelerated divestments of public sector units could help revive foreign portfolio investor interest in Indian markets. The brokerage estimates that a 15% reduction in government ownership across PSUs could unlock approximately Rs 6.6 lakh crore, while simultaneously easing valuation pressures on listed stocks.

Faster divestments are seen as a way to expand India's investable equity base, support fiscal consolidation efforts, and improve overall market liquidity. The move could also help counter recent foreign investor outflows from Indian markets.