Kotak strategists Sanjeev Prasad, Anindya Bhowmik and Sunita Baldawa are unsure if most PSU stocks will see meaningful earnings upgrades over the coming 12-24 months, to be able to justify the high valuations
Because the market cheers order wins and drives up the stock price in the short term, managements play the market smartly by bidding for orders which they know won t ever make a profit
Veteran brokers say that while rising prices encourage more risk taking, it also induces a sense of complacency and so many large investors/traders are unable to exit in time