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Invest in PSUs but not due to Modi factor

Central PSUs outperformed those in Gujarat in past decade, both on revenue and capex

Government-owned companies are on fire at Dalal Street. In the past month, the market value of public sector companies (PSUs), excluding the banking & finance and oil & gas sectors, is up 41 per cent, compared to a 21 per cent rise in the benchmark S&P BSE Sensex during the period. The bulls are betting on faster growth in government-owned companies. The optimism is based on assumption of a general revival in economic growth under the new government in Delhi and a good show by Gujarat government-owned companies under Modi rule. Betting on a Modi touch for a sharp ...