Divestment announcement pushes up PSU stocks: Seshadri Bharathan, KSEMA Fincon Ltd

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about PSU stocks.

Divestment buzz is once again coming up for most of these PSU counters. Do you think there is any substance to this or it is just an event based? Sometimes the news just comes up which is why most of these stocks rally and then the next day they just fizzle out

I think it’s more to do with the announcement that government might be looking at mobilising 60,000 crores from divestment in PSU stocks. We have seen that whenever these kind of announcements are made, the market immediately reacts - especially PSU stocks see immediate bump up in prices.

So my sense is that it has more to do with that announcement that government might be looking at PSU disinvestment and then the market people would be looking at which is the next stock which is coming up for disinvestment. As a consequence, I am seeing most of these PSU stock prices going up today.