The market capitalisation of 48 PSUs have spurted by a whopping Rs 1.89 lakh crore in the past five trading sessions, with these state-run companies suddenly turning investors' darling.

The total market capitalisation of the PSUs on the Bombay Stock Exchange's PSU index soared by Rs 1.89 lakh crore to Rs 17,40,573 crore in mere five trading sessions since November 5 when the Cabinet said that public holding in listed state-run companies will be at least 10 per cent.

Marketmen said government's decision had bolstered the sentiment on PSU shares. "The investment appeal of PSUs have gone sky high after the government decision. Investors feel their portfolio will look much more attractive with more of PSU shares as their valuations are bound to go up with the planned FPOs," a market observer said.

PSU shares like MMTC and NMDC were the hot picks with investors. While trading company MMTC zoomed 20 per cent to hit the upper circuit level on Friday, largest iron ore producer NMDC followed suit and gained 19.99 per cent on Tuesday.

At the end of trade today, ONGC remained the largest PSU with a market capitalisation of Rs 2,46,109 crore. ONGC is followed by MMTC (Rs 1,88,450 crore), NMDC (Rs 1,82,852 crore), NTPC (Rs 177319 crore) and SBI (Rs 1,51,060 crore).