In Charts: Are PSU stocks losing steam?

On Monday, stocks of state-owned enterprises crashed more than 4% at one point, bogged down by bearish sentiment and the weak December-quarter performance of some PSUs. Photo: Mint
On Monday, stocks of state-owned enterprises crashed more than 4% at one point, bogged down by bearish sentiment and the weak December-quarter performance of some PSUs. Photo: Mint

Summary

  • The 56-stock PSU index has been in the red twice over the past week before recouping some losses on Tuesday.

On 10 August 2023, Prime Minister Narendra Modi gave a ‘stock tip’ to investors, encouraging them to bet on public sector undertaking (PSU) stocks, which have had a dream run over the past year.

However, on Monday, stocks of state-owned enterprises crashed more than 4% at one point, bogged down by bearish sentiment and the weak December-quarter performance of some PSUs.

Between August and January, PSU stocks hit new peaks but have been in the red twice over the past week (before recouping some losses with a 1.2% rise on Tuesday). Are these companies running out of steam? Mint explains in charts:

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