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Below the over PSU stock performance by Palka Arora Chopra, Director, Master Capital Services Ltd.

Despite the prevailing weak market sentiment, Public Sector Undertaking (PSU) stocks are on a robust rally, underpinned by compelling factors. Valuations of many PSUs have surged, with Public Sector Banks outperforming their private counterparts by over 60% in the last 12 months. The recent 9% stock rally in Life Insurance Corporation of India (LIC) has elevated it to India's most-valued PSU stock. The government's proactive measures in enhancing accountability for growth in PSU companies have garnered investor confidence, aligning with the sector's potential for significant contributions to India's GDP through infrastructure development.
From a fundamental perspective, investors are advised to gradually enter into fundamentally strong PSU stocks while considering profit booking in those that have seen substantial gains during the market rally. On the technical front, the recent correction in the market is viewed as a short-term adjustment rather than a reflection of fundamental challenges. The majority of heavyweight PSUs continue to trade above their short-term moving averages, signalling resilience amidst market fluctuations. Investors are encouraged to perceive this correction as a potential entry point rather than a cause for undue concern. In navigating post-market crash scenarios, a balanced approach of strategic entry and profit realization is recommended for investors seeking to capitalize on the ongoing PSU stock rally.

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