New Delhi, March 12 -- The Indian stock market has been experiencing strong volatility due to the US-Iran war, soaring crude oil prices, the rupee's weakness, and heavy foreign capital outflows. The prevailing market condition seems to have nudged investors towards PSU stocks.

The BSE PSU index is up over 4% this year, while the equity benchmark Sensex is down over 10%. On a monthly basis, the Sensex is down over 6% in March, looking set to extend losses for the fourth consecutive month. On the other hand, the BSE PSU index is down over 4% in March after gaining over the last three consecutive months.

PSU stocks can offer some stability amid geopolitical and geoeconomic uncertainties, as many operate in key strategic sectors such as ban...