
In Charts: Are PSU stocks losing steam?

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: