With PSU stocks rallying non-stop amid heavy buying by retail investors, Anish Tawakley, Deputy CIO – Equity, ICICI Prudential AMC, says his team has turned cautious on the PSU space since the start of 2024 due to valuation concerns and have been gradually trimming PSU holdings.“Over the past three years, PSUs have moved from being one of the cheapest segments in the market to a situation where some of the PSUs are today overvalued. This has been largely possible owing to the good work done by the PSU managements coupled with the way the government has ensured that these companies worked in the interest of the shareholders,”
