The stock market is in a strong momentum and the index is continuously maintaining its growth. On Friday itself, the Sensex reached its new record level of 84694. However, the stocks of government companies which have been leading in this momentum for some time now seem to be slipping. Many stocks have fallen up to 40 percent from their highest levels, in such a situation the question arises whether the bullish phase in the stocks of government companies is over now. See what the figures and market experts say

Decline in PSU stocks

If we look at the performance of government companies, the stocks of government companies have fallen by 20 to 40 percent from their highest levels. Nifty PSE index has fallen by 10 percent from its peak and the market cap of PSE index has slipped by Rs 4 lakh crore. Among the stocks that have registered losses, Cochin Shipyard has fallen by 44 percent, Garden Reach by 40 percent, BEML by 35 percent, Mazgaon Dock by 32 percent, Midhani by 31 percent, HAL by 26 percent, Bharat Electronics by 20 percent since August 1. Oil India has fallen by 4.6 percent, BPCL by 7 percent, Power Grid by 7 percent and IOC by 8 percent. HPCL and NTPC are still in the green with a slight increase during this period. The main reason for the correction in the stock is the valuation of the stocks. The decline has been seen more in those stocks whose valuation has become very expensive. However, the decline in stocks with better valuation is limited or they are currently in the green mark compared to their highest level. What are the experts' estimates? CNBC TV18 spoke to many experts on the question whether the rally of PSU stocks is over. The fund manager of a major fund having a large exposure to PSU stocks said that PSU stocks will perform better in the long term and the bull market is not over yet. However, the phase of rally coming very easily in government companies is definitely over. According to him, such strong PSUs which are in a different and special business can continue to perform better. At the same time, a veteran investor said that the correction coming in PSU stocks is a common correction seen in a bull market. However, he said that in the coming time, the rise can be led by new stocks which have not yet moved. At the same time, Rahul Sharma of JM Financial said that the PSE index is currently trading near the very important support of 200 DMK. He said that valuations are high in many stocks, due to which selling is being seen.