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From downturn to dominance: PSUs reclaim 17.3% India's market glory

An analysis by Elara Capital indicates that the PSU sector performs well during election years

PSU Stocks, Public Sector Undertaking
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The allure of attractive valuations and improved growth prospects has drawn investors back to PSU stocks.

Sundar Sethuraman Bengaluru

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The share of listed public sector undertakings/enterprises (PSUs/PSEs) in India’s total market capitalisation has surged to an impressive 17.3 per cent, reaching the highest point in nearly seven years. This marks a significant shift from 2022 when their share declined to almost single digits.
 
The Nifty PSE has more than doubled in the past year. An analysis by Elara Capital indicates that the PSU sector performs well during election years. “Empirical evidence suggests that in a general election year, the S&P BSE PSU Index rallies 14 per cent on average, with a tendency for returns to bottom out in February.

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First Published: Mar 10 2024 | 10:39 PM IST

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