India’s state-run firms seen extending dream rally on Modi bets

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Key Points

The S&P BSE PSU Index, a gauge that includes some of the nations largest power utilities, miners, oil refiners and engineering firms, has surged 44% thus far in 2023..

Indias state-owned stocks are all the rage and some investors say the rally isnt over as Prime Minister Narendra Modis expected re-election next year is seen supporting capital expenditure, further boosting their allure...

Modis government is spending billions of dollars on everything from roads and railways to defense, renewing interest in a sector that has for long been a straggler of Indias $4 trillion stock market...

Investors expect the conducive government policy to boost the low valuation the PSU gauge trades at 10 times its 12-month forward earnings despite being set for its best year since 2009..

We have seen many top-level executives setting up meeting with investors and actively discussing prospects of their companies, said Ramesh Mantri, chief investment officer at WhiteOak Capital AMC, which has $792 million in assets...

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