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PSUs Draw Strong Attraction

There is a visible momentum in the stock price across PSU companies, especially banks

One of the biggest beneficiaries of this year's bull run that commenced in February are the PSU stocks. We analysed the fortunes of PSUs, including public sector banks which were available dirt cheap, with many of them at their life time low valuations. Benefiting from this development, the CNX PSE Index (Public Sector Enterprises) posted 14 per cent gains from February, way more than the 8 per cent gain by the Nifty in the same period. The big surprise was from the PSU banks, which account for 7 of the top 10 banks with the highest returns, with the CNX PSU Bank index posting an exceptional 32 per cent return.