Govt loses Rs 6 trillion in market rout as PSU stocks take a beating

Investor sentiment towards PSUs at one of its lowest points, say experts

The sharp fall in markets has dealt a telling blow to the government. The value of government holding in listed PSUs has reduced by Rs 6 trillion from their one-year highs. An analysis of data from Capitaline shows the 41 state-owned stocks have halved from their 52-week highs and another 32 are currently trading at 12-44 per cent below their 52-week highs.  

Experts say investor sentiment towards the PSU space is at one of its lowest points. “The PSU space has underperformed the most, whether large-caps or mid-caps. Investors don’t like it when the government compromises on economic rationale. The