PSU Privatization Push in Budget 2026: A Game Changer, Says Entrust's Karthik

• Karthik S of Entrust Family Office suggests a focused push for PSU privatization in Budget 2026 could unlock value, improve efficiency, and increase competitiveness.
• The Budget is expected to fine-tune existing schemes, reallocate spending to high-multiplier areas, maintain fiscal discipline, and support export segments.
• Select PSU banks and energy PSUs are seen as attractive, while some defense PSUs appear expensive due to significant valuation gains.
• Sectors like banks, metals, autos, and capital goods are poised for growth, benefiting from infrastructure push, credit growth, and consumption trends.
• Market performance in 2026 hinges on positive tariff progress, strengthening earnings outlook, and stable geopolitical conditions, with earnings trajectory crucial for a breakout.

Why It Matters: A focused push for PSU privatization in Budget 2026 is seen as a potential game changer for India's economy.