PSU stocks see sharp movements after Nifty CPSE index rejig; IOCL, PFC dip

Experts say companies added into index could attract large investor flows

Government-owned firms saw sharp share price movements on Monday, following exclusion and inclusion of certain stocks  in the Nifty CPSE index, which acts as an underlying portfolio for the CPSE Exchange Traded Fund, which is used by the government to monetise its PSU holdings.
 
The share price of Indian Oil (IOCL) closed 4.2 per cent lower, while price of Power Finance Corporation (PFC) slipped 7.9 per cent. Effective from January 24, IOCL and PFC will be excluded from the index, while Cochin Shipyard, NHPC, NMDC, and Power Grid Corporation of India will be added to the index. The share