Govt stake sales weigh on public sector stocks2 min read 17 Mar 2013, 03:44 PM IST
Govt’s desperation to meet divestment target before financial year ends is a blow to minority shareholders
The S&P BSE PSU Index, made up of 60 state-controlled companies, has taken a beating in the past two months. While the broader market, measured by the S&P BSE 100 Index, has dropped 4% from its peak in mid-January, the PSU index has fallen by over 12%. What’s more, the index has given up all of the gains since early September, when the reforms as well as the talk of further reforms had led to a rally in Indian stocks. The broader market is still about 13% higher compared with the levels in early September.