BSE PSU Index

A K Prabhakar, head of research at IDBI Capital, too remains selective and suggests investors exit power sector stocks such as REC and PFC where the run up has been sharp

The rally on Dalal Street has entered a new cycle as former leaders have turned laggards, while stocks and sectors that lagged are outperforming now

Hindustan Copper, RCF, MMTC, NBCC, Indian Overseas Bank, Bank of Maharashtra and Bank of India have rallied more than 50% in past one month.

BHEL, Hindustan Copper, MMTC and The New India Assurance surged more than 11%, while MOIL, NBCC, NLC India, GIC Re and SAIL were up in the range of 5-10%.

Experts point to multiple factors, including the constant news of divestment and follow-on public offers

Engineers India, NLC India, IFCI, Union Bank, NMDC, IDBI Bank, Corporation Bank and PNB were up in range of 5% to 8% on the BSE

BSE PSU index has outperformed with a gain of 20% from market's December low