Investors are flocking to PSU stocks again, but can they retain the momentum?

ET Intelligence Group: Cheaper valuations relative to their return ratios have attracted investors to the PSU counters over the past few weeks. The current trailing price-earnings (P/E) multiple of the BSE PSU index at 11 is at 40% discount to the 10-year average valuation and at a decade high 67% discount to the Nifty’s P/E. Over the past decade, the BSE PSU index contracted by 38% whereas the benchmark Nifty 50 rose by 128%. However, due to