Best Performing PSU Stocks in India to Watch in January 2026

From BHEL to Canara Bank: Top PSU Stocks That Might Dominate the Market in 2026
Best Performing PSU Stocks in India to Watch in January 2026.jpg
Written By:
Pardeep Sharma
Reviewed By:
Atchutanna Subodh
Published on

Overview:

  • PSU stocks showed strong momentum this year, with Hindustan Copper leading on returns and volumes, supported by rising metal demand.

  • Banks like Canara Bank and Bank of India traded at low PE levels while delivering steady multi-month gains.

  • NBCC and other infrastructure PSUs benefited from government spending, as reflected in rising prices and healthy market capitalization.

PSU stocks have continued to see strong buying interest as January 2026 comes closer. Many showed sharp price movement, high trading volumes, and clear improvement in valuation. Market focus remains on balance sheet clean-up, government support, and sector growth drivers. 

The data below shows recent prices, returns, market capitalization, valuation ratios, and 52-week ranges. These numbers clearly explain why PSU stocks have retained demand.

Hindustan Copper: One of the Top PSU Stocks to Buy

Hindustan Copper traded at Rs. 524.35 with a short-term fall of 1.69%, but overall performance remained strong. It delivered 1-month returns of 60.35% and 3-month returns of 59.16%. Trading volumes reached 4,19,69,306 shares, showing heavy market participation. Market capitalization stood at Rs. 50,706 crore, while the stock touched a 52-week high of Rs. 545.95 and a low of Rs. 183.82. 

The PE ratio stayed high at 90.79, while industry PE was -96.77. These figures indicate strong expectations from copper demand, infra projects, and clean energy usage.

NALCO Combines Value and Growth

NALCO traded at Rs. 315.90 with a small daily decline of 0.22%. Volume remained healthy at 51,57,182 shares; market capitalization reached Rs. 58,019 crore. 

The stock posted 1-month returns of 21.51% and solid 3-month returns of 47.71%. The 52-week high stood at Rs. 318.85, and the low was Rs. 137.75, while PE ratio remained attractive at 9.52 compared to industry PE of 88.37. These numbers support strong aluminium demand and a stable margin outlook.

Also Read: HAL Shares Surge 1.9% as Defence PSU Signs Technology Transfer Deal with ISRO, IN-SPACe & NSIL

Canara Bank Gains on Banking Strength

Canara Bank traded at Rs. 156.85 with a daily gain of 1.83%. Trading volume crossed 1,21,63,493 shares, showing wide investor interest. Market capitalization stood at Rs. 1,42,273 crore. The stock delivered 1-month returns of 3.48% and 3-month returns of 26.79%. 

The 52-week high stayed near Rs. 154.50, while the low stood at Rs. 78.60. The PE ratio remained low at 7.98 against the industry PE of 9.93, hinting at steady loan growth and improved asset quality.

BHEL Rides Capital Goods Revival

Bharat Heavy Electricals traded at Rs. 285.35 with a daily rise of 0.90%. Trading volume reached 15,04,327 shares, with market capitalization standing at Rs. 99,361 crore. 

It showed a 1-month decline of 1.89% but delivered strong 3-month returns of 19.67%. The 52-week high touched Rs. 295.25, and the low stayed at Rs. 176.00. PE ratio stuck at high levels of 176.69 compared to the industry PE of 3.07, proving why BHEL is one of the top PSU stocks to buy.

Bank of India Maintains Consistent Growth

Bank of India traded at Rs. 144.45 with a daily gain of 1.72%. Trading volume stood at 26,37,285 shares as market capitalization reached Rs. 65,763 crore. This stock was seen recording a 1-month fall of 1.83% but delivered 3-month returns of 17.05%. 

The 52-week high reached Rs. 151.43, while the low stood at Rs. 90.05. The PE ratio of 6.70 stayed well below industry PE of 9.93, highlighting improved earnings visibility and stable banking operations.

Bank of Baroda Shows Scale and Stability

Bank of Baroda traded at Rs. 297.15 with a daily gain of 1.42% while volume stood at 18,98,879 shares. Market capitalization reached Rs. 1,53,667 crore, with the stock delivering 1-month returns of 2.54% and 3-month returns of 14.93%. The 52-week high touched Rs. 303.95, with a low at Rs. 190.70. The PE ratio of 7.82 compared well with an industry PE of 9.93, hinting at strong scaling and a diversified business model.

NBCC Benefits from Infrastructure Push

NBCC traded at Rs. 122.43 with a daily rise of 0.42%. Trading volume stayed active at 20,51,549 shares. Market capitalization was noted at Rs. 33,056 crore. It delivered 1-month returns of 4.92% and 3-month returns of 14.34% as the 52-week high stood at Rs. 130.70. The low was Rs. 70.80; PE ratio reached 53.49 compared to industry PE of 40.58. Overall, these numbers showed optimism around government construction and redevelopment work.

IDBI Bank and SBI Add Banking Strength

IDBI Bank traded at Rs. 103.22 with a daily gain of 1.88%. Volume crossed 74,37,985 shares. Market capitalization stood at Rs. 1,10,986 crore, with IDBI offering 1-month returns of 2.83% and 3-month returns of 12.91%. The PE ratio stood at 11.70 versus the industry PE of 9.63. 

On the other hand, the State Bank of India traded at Rs. 980.00 with a daily gain of 0.67%. Its market capitalization reached Rs. 9,04,601 crore as the stock delivered 1-month returns of 0.10% and 3-month returns of 12.33%, signaling stability and leadership in PSU’s banking space.

Also Read: Is Now the Right Time to Invest in PSU Stocks?

Outlook for January 2026

PSU stocks combined momentum, value, and liquidity heading into January 2026. High returns from metals, steady gains from banks, and revival-led optimism in capital goods shaped the PSU narrative. Strong volumes, improving balance sheets, and supportive policy trends will keep these stocks firmly in focus in the upcoming months.

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FAQs 

1: Why are PSU stocks gaining attention for January 2026?
PSU stocks showed strong price momentum, rising trading volumes, improving balance sheets, and attractive valuations across banking, metals, and infrastructure sectors.

2: Which PSU stock delivered the highest recent returns?
Hindustan Copper delivered the strongest short-term performance with over 60% 1-month returns and nearly 59% 3-month returns.

3: Why are PSU banks considered attractive right now?
PSU banks such as Canara Bank and Bank of India traded at low PE ratios while reporting steady price gains, stable asset quality, and consistent credit growth.

4: How does NBCC fit into the PSU growth story?
NBCC benefited from government-led infrastructure and redevelopment projects, as reflected in double-digit 3-month returns and strong market participation.

5: What key factors should be tracked in PSU stocks going forward?
Investors tracked earnings growth, valuation trends, government policy support, sector demand, and volume activity to assess PSU stock performance.

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