The second tranche of the CPSE ETF was subscribed by at least four times by anchor investors on the first day of its opening on Tuesday. Also, the hopes of high interest by government-backed organizations has raised expectations of more such investments after Employees’ Provident Fund Organisation (EPFO)’s participation in the CPSE ETF sale. According to Choksey, though a major chunk of current rally in the pack could be attributed to the CPSE ETF sale, PSU stocks have been doing well for a while, as government is asserting performance out of them. “Variety of accidental things make the current CPSE ETF attractive, but largely it is something which should be looked at caution. According to Kumar, around 75% of the CPSE ETF- 75% is constituted by state-run energy companies.

Source: Mint January 18, 2017 04:56 UTC