On 10 August 2023, Prime Minister Narendra Modi gave an “equity advisory” to investors, urging them to bet on public sector undertaking (PSU) stocks, which have had a dream run over the past year.
However, on Monday, stocks of state-owned enterprises crashed more than 4% at one point, hampered by bearish sentiment and the weak December performance of some PSUs.
Between August and January, PSU stocks hit new highs but were in the red twice over the past week (before recovering some losses with a 1.2% rise on Tuesday). Are these companies going out of business? Mint explains in diagrams: