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The Nifty PSE index, which tracks large listed public sector enterprises, slipped around 1% in Wednesday’s session, underperforming the benchmark Nifty 50. The decline came after a strong multi-month rally, as investors booked profits in heavyweights such as NTPC, Coal India, Power Grid, ONGC and oil marketing companies amid weak global cues.
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PSU enterprise pack pauses after strong run
After benefiting from the “PSU trade” that lifted several state-run stocks to record highs this year, the Nifty PSE basket witnessed broad-based selling alongside a wider market dip driven by concerns over the weak rupee, FII outflows and global risk-off sentiment. Analysts point out that the index had outpaced the Nifty 50 over the past 12–18 months, making it vulnerable to even small shifts in risk appetite and sector rotation towards private financials and defensives.
Key highlights
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Nifty PSE index last down about 1%, with breadth negative across energy, power, metals and engineering PSUs.
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Recent laggards include GAIL, BPCL, Power Grid and REC on earlier sessions, while NTPC, ONGC, Coal India and SAIL also saw intermittent profit-taking.
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Over the past year, Nifty PSE had already rallied sharply on strong earnings, higher dividends, government capex and disinvestment buzz, leaving valuations rich versus historical averages.
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Market strategists attribute the latest dip mainly to short-term profit-booking and global jitters rather than any immediate deterioration in PSU fundamentals.
Investors are advised to be selective within the PSE universe, focusing on balance-sheet strength, visibility of future cash flows and policy support in sectors like power, transmission and defence.
Sources: Business Standard “Quick Wrap” on Nifty PSE
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