NEW DELHI: After waiting in the wings for years, public sector stocks (PSUs) are having their moment in the sun in a year when benchmark indices have been highly volatile. Often touted as wealth destroyers and mainly sought for their high-dividend yields, PSU stocks have surprised the Street by offering multibagger returns.

The BSE PSU bank index has recorded 21% gains on a year-to-date (YTD) basis, beating Sensex’s 6% rise by a wide margin. Four stocks have rallied over 100% in this peri ..