Returns for PSU pack lag market in 2017

The Nifty Public Sector Enterprise (PSE) index, a gauge for the stock performance of state-owned companies, has severely underperformed the market in 2017. The Nifty PSE index has gained only 17 per cent this year even as the benchmark Nifty rallied 30 per cent. 

Sluggish performance of PSE heavyweights including Coal India and ONGC is the reason behind the underperformance. Shares of Coal India, are down 5.4 per cent this year, due to weak demand. ONGC, meanwhile, has gained only four per cent as global oil prices have remained soft for the major part of the year.

 

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