Jitters on policy continuity for PSU stocks

A long-drawn election process has come to a close and its most immediate impact has been on equity markets. But within sectors, it was PSUs that witnessed the highest declines in the day. In the last five years, these stocks gained from higher capital expenditure, logistics upgradation, defence spending and power infrastructure upgradation. With an overhang on policy continuity, these stocks shed around 20 per cent on Tuesday. We look at the gains made by PSUs in the last year and the last five years compared to the day’s loss on June 4.