Sunil Subramaniam of Sundaram Mutual advises caution in investing in PSU stocks due to liquidity concerns and fundamental issues. Despite strong smallcap and midcap earnings, it is recommended to wait for a fundamental reset and be selective in the PSU space. The stress test reveals that if there is a sudden shock, a whiplash of some investor pulling out, will you have trouble in selling your most appreciated smallcaps?
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