Bhandari: Each Bull Market Sees New Leaders, Sectors Dominant in One Cycle May Lag in the Next.
Manish Bhandari, CEO of Vallum Capital, Warns of Potential Stock Market Bubble in PSU Shares, Especially Railway Stocks, at PMS AIF WORLD Summit.
Bhandari’s Caution: Exercise Vigilance in Railway PSU Stocks Amidst BSE PSU Index’s Doubling to 18761 in Past Year; Rail Vikas Nigam Limited, Ircon International Surge 319% and 337% Respectively, BEML and Railtel Follow Suit with 123% and 276% Rally.
The market is divided over the blistering rally in PSU stocks. While one section expresses skepticism due to the poor track record of shareholder value creation over time, another argues that the current upswing signals a shift, with the government now prioritizing shareholder value.
Bhandari highlights that every bull market sees a new leader, suggesting that sectors thriving in one cycle may not perform as strongly in the next. He cites the example of Infosys, which experienced a significant rally from 1999 to 2000 but took eight years to regain its original market capitalization levels.
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