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PSUs like REC, Power Finance are up over 250% in a year. Will the sector rally continue?

PSUs like REC, Power Finance are up over 250% in a year. Will the sector rally continue?
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Synopsis

In the past one year, PSU stocks have jumped 100%. And over the last decade, they have gone through a complete cycle of valuation. So, will PSU stocks do well from here onwards? The price-to-book value of PSE Index is back to 2014 levels where chances are that ROEs, which are currently at their peak, may fall.

By & , ET Prime
5 mins read, Last Updated:
Mutual funds are usually good at timing their new fund offers (NFOs). But when Quant Mutual Fund launched its PSU NFO on February 2, 2024, little did the fund managers know that the index was headed for a big fall. The Nifty PSE Index fell close to 4% on February 12. Between February 9 and February 13, the top three stocks (NTPC, Power Grid Corp, and ONGC) which account for 35% of the index, were down by around 6%. While on Monday these stocks

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