InvestorQ : What is your stock market outlook for 30th September? Do you see the PSU stocks still outperforming the market?
Debbie Mascarenhas made post

What is your stock market outlook for 30th September? Do you see the PSU stocks still outperforming the market?

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diksha shah answered.
3 months ago
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The global overhang of Evergrande, US debt ceiling and the US inflation spike played on Indian markets. However, the positive A/D ratio is a good signal. Both the Nifty and the Sensex closed in the red as heavyweight financials bore the brunt of the fall in the markets. Once again, PSU stocks like NTPC and Power Grid were among the big gainers.

There are two diverse trends visible in the market. On the one hand, the advance decline ratio was favourable in the ratio of 27:23, which was largely accounted for by an all-round rally in PSU stocks. On the risk side, the India VIX is now close to 19 and anything above 20 makes the market vulnerable. Of course, VIX could taper post the expiry completion.

Foreign investors net sold Rs.1,896 crore of equities while DFIs bought a whopping Rs.3,262 crore. These were block deals in counters like HDFC AMC and Max changing hands. In global market trends, Dow bounced back late on Wednesday but the NASDAQ remained in the red. European markets, led by FTSE were in the green. SGX remains 45 bps down in early trades.

Let me get back to your query on PSU stocks and the series of measures like an aggressive divestment program, national land bank monetization and the make in India measures are likely to lead to a re-rating of PSU stocks. Most PSUs are up sharply in the last 2 days and that trend could continue for some more time from here on.
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