This week in the Indian stock market, the usually high-performing PSU or public sector unit stocks saw a slight slump. Many market watchers wondered if it has stepped into the bear zone.&nbsp;

Defence PSU GRSE saw a fall of 37 per cent, in comparison to its 52-week peak, and BEML slumped by 31 per cent and Cochin Shipyard by 30 per cent.

Stock market favourites like IRCON, IRFC, RITES, HUDCO, Mazagon Dock Shipbuilders and Bharat Dynamics also fell.

But a day after the decline, PSU bank stocks advanced and saw an upward trend in the stock market.

Also Read:<a href="https://www.wionews.com/business-economy/money-wise-has-the-global-stock-markets-crashed-heres-what-you-must-do-to-survive-it-748655">&nbsp;Money-Wise: Have the global stock markets crashed? Here's what you must do</a>

Explaining this slump, Retail Research Religare Broking Ltd's Senior Vice President Dr Ravi Singh said, "While PSUs have shown strong performance, recent corrections were on the cards. The PSU index remains in an uptrend, trading near a strong support zone of 6400-6600."

But why did these PSU stocks, which were doubling the money of the investors after every few months, go through a correction in the stock market?

"Many PSU stocks ran up too much too fast, pushing their valuations to unjustifiable levels. The bull run in the market and the retail investor enthusiasm help in this targeted jacking up of prices. Once the operator-driven rally runs its course, these stocks revert to realistic levels. The June quarter shareholding pattern reveals that mutual funds sold stakes in 28 PSU stocks while FIIs were bearish on 30 such counters," said Tanvi Kanchan, Head of&nbsp;UAE Business &amp; Strategy, Anand Rathi Shares and Stock Brokers.

<h2>Experts explain what's best for investors when PSUs turn bearish</h2>

<h3>Dr Ravi Singh, Senior Vice President of Retail Research Religare Broking Ltd</h3>

<ul>
	<li>PSU stocks saw a normal price-wise correction. As long as the index stays above 6,400, investors should hold their positions and avoid panic selling.</li>
	<li>In the near term, PSU stocks may see some consolidation; but the broader outlook is definitely positive. Investors should look up for steady performance and more gains as the market stabilises and allows the fundamentally strong PSUs to catch up.</li>
</ul>

<h3>Tanvi Kanchan, Head of UAE Business &amp; Strategy, Anand Rathi Shares and Stock Brokers</h3>

<ul>
	<li>PSUs which do not have a moat and are inefficient, with weak balance sheets, low profitability, and low growth might go out of favour now. One should be very careful in discriminating between moat PSUs which are not overvalued, vs which are overvalued and also between moat vs non-moat PSUs before reaching a conclusion.&nbsp;</li>
	<li>Only PSUs with moats, having high capital efficiency, strong balance sheets, good profit, and good cash flows can sustain themselves in the future.&nbsp;</li>
	<li>The Israel-Hamas conflict is expected to end which may impact Brent crude oil. This can impact PSU oil &amp; gas stocks, which in turn will have a bearing on the Nifty PSE index.&nbsp;</li>
	<li>Capex-linked PSU stocks are also likely to gain as the government is expected to retain its focus on infrastructure development, railways, energy, power and manufacturing.</li>
</ul>

Watch:&nbsp;Global markets roundup: Asian stocks climb ahead of Jackson Hole

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/global-markets-roundup-asian-stocks-climb-ahead-of-jackson-hole-752142/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Lt Col Rochak Bakshi(Retd), founder and CEO of True North Financial Services&nbsp;

<ul>
	<li>Those who have already invested should stay put and wait for the earnings to catch up and valuations to this cool down. It is best to stay invested with a longer-term view.</li>
	<li>There are a few pockets like banks which though not very cheap can be looked at but the broader strategy of investors should be for valuations to cool down and earnings to catch up before investing.</li>
	<li>PSUs with strong moats like defence have high capital efficiency and will improve their profitability from here on. We can expect a time-wise correction in the short to medium term.&nbsp;</li>
	<li>Eventually, these PSU stocks will move up in tandem with their earnings performance and have the potential to give above-average returns in the long term.</li>
</ul>

This week in the Indian stock market, the usually high-performing PSU or public sector unit stocks saw a slight slump. Many market watchers wondered if it has stepped into the bear zone.

This week in the Indian stock market, the usually high-performing PSU or public sector unit stocks saw a slight slump. Many market watchers wondered if it has stepped into the bear zone. Defence PSU GRSE saw a fall of 37 per cent, in comparison to its 52-week peak, and BEML slumped by 31 per cent and Cochin Shipyard by 30 per cent. Stock market favourites like IRCON, IRFC, RITES, HUDCO, Mazagon Dock Shipbuilders and Bharat Dynamics also fell. But a day after the decline, PSU bank stocks advanced and saw an upward trend in the stock market. Also Read: Money-Wise: Have the global stock markets crashed? Here's what you must do Explaining this slump, Retail Research Religare Broking Ltd's Senior Vice President Dr Ravi Singh said, "While PSUs have shown strong performance, recent corrections were on the cards. The PSU index remains in an uptrend, trading near a strong support zone of 6400-6600." But why did these PSU stocks, which were doubling the money of the investors after every few months, go through a correction in the stock market? "Many PSU stocks ran up too much too fast, pushing their valuations to unjustifiable levels. The bull run in the market and the retail investor enthusiasm help in this targeted jacking up of prices. Once the operator-driven rally runs its course, these stocks revert to realistic levels. The June quarter shareholding pattern reveals that mutual funds sold stakes in 28 PSU stocks while FIIs were bearish on 30 such counters," said Tanvi Kanchan, Head of UAE Business & Strategy, Anand Rathi Shares and Stock Brokers. Experts explain what's best for investors when PSUs turn bearish Dr Ravi Singh, Senior Vice President of Retail Research Religare Broking Ltd PSU stocks saw a normal price-wise correction. As long as the index stays above 6,400, investors should hold their positions and avoid panic selling. In the near term, PSU stocks may see some consolidation; but the broader outlook is definitely positive. Investors should look up for steady performance and more gains as the market stabilises and allows the fundamentally strong PSUs to catch up. Tanvi Kanchan, Head of UAE Business & Strategy, Anand Rathi Shares and Stock Brokers PSUs which do not have a moat and are inefficient, with weak balance sheets, low profitability, and low growth might go out of favour now. One should be very careful in discriminating between moat PSUs which are not overvalued, vs which are overvalued and also between moat vs non-moat PSUs before reaching a conclusion. Only PSUs with moats, having high capital efficiency, strong balance sheets, good profit, and good cash flows can sustain themselves in the future. The Israel-Hamas conflict is expected to end which may impact Brent crude oil. This can impact PSU oil & gas stocks, which in turn will have a bearing on the Nifty PSE index. Capex-linked PSU stocks are also likely to gain as the government is expected to retain its focus on infrastructure development, railways, energy, power and manufacturing. Watch: Global markets roundup: Asian stocks climb ahead of Jackson Hole Lt Col Rochak Bakshi(Retd), founder and CEO of True North Financial Services Those who have already invested should stay put and wait for the earnings to catch up and valuations to this cool down. It is best to stay invested with a longer-term view. There are a few pockets like banks which though not very cheap can be looked at but the broader strategy of investors should be for valuations to cool down and earnings to catch up before investing. PSUs with strong moats like defence have high capital efficiency and will improve their profitability from here on. We can expect a time-wise correction in the short to medium term. Eventually, these PSU stocks will move up in tandem with their earnings performance and have the potential to give above-average returns in the long term.

Money-Wise: When PSU stocks turn bearish, should investors hold or sell? Experts weigh in

Not happy with the performance of the employees, the Sikkim government has withdrawn the five-day working week system and declared that they will get holidays only on second and fourth Saturdays.

The new system will be effective from April 1, according to a notification.

Also read: <a href="https://www.wionews.com/india-news/no-5-day-a-week-in-commercial-banks-rbi-212124">No 5-day a week in commercial banks: RBI</a>

After coming to power in May last year, chief minister Prem Singh Tamang had introduced the five-day working week for employees of the state government and public sector units. Earlier, it was a six-day week.

Also read: <a href="https://www.wionews.com/india-news/if-given-a-4-day-work-week-indians-would-learn-a-new-skill-survey-204479">If given a 4-day work week, Indians would learn a new skill: Survey</a>

However, official sources said, the Sikkim Krantikari Morcha government was not happy with the performance of its employees despite providing them holidays on Saturdays.

Modifying the May 28, 2019 notification, chief secretary S C Gupta on Monday said that with effect from April 1, 2020, only the second and fourth Saturdays will be holidays for the government and PSU offices in Sikkim.&nbsp;

Not happy with the performance of the employees, the Sikkim government has withdrawn the five-day working week system and declared that they will get holidays only on second and fourth Saturdays.

Not happy with the performance of the employees, the Sikkim government has withdrawn the five-day working week system and declared that they will get holidays only on second and fourth Saturdays. The new system will be effective from April 1, according to a notification. Also read: No 5-day a week in commercial banks: RBI After coming to power in May last year, chief minister Prem Singh Tamang had introduced the five-day working week for employees of the state government and public sector units. Earlier, it was a six-day week. Also read: If given a 4-day work week, Indians would learn a new skill: Survey However, official sources said, the Sikkim Krantikari Morcha government was not happy with the performance of its employees despite providing them holidays on Saturdays. Modifying the May 28, 2019 notification, chief secretary S C Gupta on Monday said that with effect from April 1, 2020, only the second and fourth Saturdays will be holidays for the government and PSU offices in Sikkim.

Sikkim withdraws five-day working week system for government employees

Congress party on Wednesday gave adjournment motion notice in Lok Sabha over 'indiscriminate disinvestment of Public Sector Undertakings (PSUs)'. 
 
The adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance. 
 
Last week on Wednesday, the Cabinet Committee on Economic Affairs (CCEA) accorded 'in-principle' approval for strategic disinvestment in five central public-sector enterprises including the Bharat Petroleum Corporation Ltd (BPCL). 
 
Apart from BPCL, the Union Cabinet has also approved the sale of its stake in four other public sector enterprises,&nbsp;Shipping Corporation of India and the Container Corporation of India, Tehri Hydro Development Corporation India Limited and the North Eastern Electric Power Corporation

Congress party on Wednesday gave adjournment motion notice in Lok Sabha over 'indiscriminate disinvestment of Public Sector Undertakings (PSUs)'. The adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance.

Congress party on Wednesday gave adjournment motion notice in Lok Sabha over 'indiscriminate disinvestment of Public Sector Undertakings (PSUs)'. The adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance. Last week on Wednesday, the Cabinet Committee on Economic Affairs (CCEA) accorded 'in-principle' approval for strategic disinvestment in five central public-sector enterprises including the Bharat Petroleum Corporation Ltd (BPCL). Apart from BPCL, the Union Cabinet has also approved the sale of its stake in four other public sector enterprises, Shipping Corporation of India and the Container Corporation of India, Tehri Hydro Development Corporation India Limited and the North Eastern Electric Power Corporation

Congress gives adjournment motion notice in Lok Sabha for PSUs disinvestment

State Bank of India (SBI), the nation&#39;s biggest lender by assets, will gain $120 billion in assets following its merger with associate banks and Bharatiya Mahila Bank, the lender said in a statement on Saturday. 
 
In a first move to consolidate the country&#39;s struggling public sector banks, SBI&#39;s board on Thursday approved the share swap ratio for the proposed takeover of five units that had been run at arms-length, as well as the state-run Bharatiya Mahila Bank, a bank for women set up in 2013. 
 
Policymakers want to recapitalise and consolidate the country&#39;s state-run banks so that they can extend fresh credit and help drive an investment-led recovery in Asia&#39;s third-largest economy that is currently getting a boost from state and private consumption. 
 
India&#39;s 27 public sector banks account for 70 per cent of its banking sector assets, as well as the lion&#39;s share of the country&#39;s $120 billion in troubled loans. 
 
SBI said the merger would expand its assets by 36 per cent to about $447 billion.

(Reuters) 
&nbsp;

SBI said the merger would expand its assets by 36% to about $447 billion

State Bank of India (SBI), the nation's biggest lender by assets, will gain $120 billion in assets following its merger with associate banks and Bharatiya Mahila Bank, the lender said in a statement on Saturday. In a first move to consolidate the country's struggling public sector banks, SBI's board on Thursday approved the share swap ratio for the proposed takeover of five units that had been run at arms-length, as well as the state-run Bharatiya Mahila Bank, a bank for women set up in 2013. Policymakers want to recapitalise and consolidate the country's state-run banks so that they can extend fresh credit and help drive an investment-led recovery in Asia's third-largest economy that is currently getting a boost from state and private consumption. India's 27 public sector banks account for 70 per cent of its banking sector assets, as well as the lion's share of the country's $120 billion in troubled loans. SBI said the merger would expand its assets by 36 per cent to about $447 billion. (Reuters)

State Bank of India says will gain $120 billion in assets from merger

psus

Psus, News on Psus, stories on Psus, articles on Psus, Psus stories at Wion, Psus news, Psus latest news