The PSU stocks’ rally has the market divided, with some saying that the government stocks are finally getting their due, while others arguing that there s too much optimism due to momentum.
Overall, analysts maintain a positive yet cautious stance as Nifty 50 is set to retest its record high level, but there could be bouts of intra-day volatility. A possible breakout attempt for Nifty 50 above 22,150 could lead to an uptrend to inch towards 22,500+.
The current rally in their stock prices could have been far bigger and longer-lasting if the UPA government’s reforms in energy-product prices had been made real and not reversed in practice by the BJP government.
PSU stocks IRFC, RVNL and Mazagon Dock surged up to 13 percent in intra-day deals on Tuesday to hit their respective new highs ahead of the 2024 Interim Union Budget.