D-Street investors add bearish bets on PFC and REC, rush to defensives
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Traders have built bearish derivative bets on state-owned power sector lenders Power Finance Corp (PFC) and REC promoted by the reversal in the recent bullish momentum in these stocks. On Monday, Power Finance Corp dropped 3.7% to ₹525 and REC declined 2.6% to ₹592. In last five days, the stocks fell around 5% each while the benchmark Nifty shed 1.3% during the same period. Analysts see these stocks falling further as investors are shifting money from recent favourites like PSUs and power stocks to the so-called defensive sectors. "In the last one and a half years, the PSU theme has played out very well, but is now witnessing profit booking," said Hemang Jani, director, Finazenn, an investment advisory. Traders have been quick to pounce on the weakness in these stocks, creating bearish positions in their September futures contracts. "PFC and REC have witnessed addition in open interest with price correction which indicates ...