By 5paisa 03 Mar 2025
PSU stocks have crashed, losing ₹24 lakh crore in market cap since July, falling to ₹57.43 lakh crore in February.
PSU stocks now make up 14.61% of BSE’s total market cap, the lowest since November 2023, down from 17.77% in May 2024.
Weak Q3 earnings, high valuations, lower defence & railway orders, profit booking, and lower capex in Union Budget 2025 are key reasons.
Dredging Corp (-65%), Chennai Petro (-64%), MMTC (-62%), SCI, HOCL, and Ircon (over -60%) have been the worst-hit PSU stocks.
The Nifty PSE Index has dropped 32% from its peak, with stocks trading below key EMAs, signaling continued selling pressure.
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