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DailyBubble News

Multibagger PSU stocks including PFC, REC, RVNL fall up to 25%; Nifty PSE index hits 2-month low

The sudden shift to negativity in the market sent shockwaves among investors, leading them to reevaluate their positions in the midst of increased uncertainty. All stocks were facing a downturn, with PSU stocks taking the hardest hit.

During today’s trading session, multibagger PSU stocks like Power Finance Corporation (PFC) and Rural Electric Corporation (REC) saw significant drops of 25%. PFC fell to ₹416 from its previous close of ₹554.80, while REC plummeted to ₹450.40 from ₹607.80 per share.

Other multibagger PSU stocks such as RVNL, IRFC, RailTel Corporation, and IRCON International also experienced declines of up to 15%. Defence PSU stocks like Mazagon Dock, Cochin Shipyard, and Bharat Dynamics also saw losses of up to 15% in their share values.

The entire PSU sector reflected a downtrend, with all PSU sectoral indices trading in the red with cuts exceeding 15%. Notably, Nifty CPSE was down by 20%, Nifty PSU Bank by 19.52%, Nifty PSE by 20%, and S&P BSE PSU by 17.37%. BSE Power also recorded a significant decline, tumbling over 13% amidst the market turmoil.

Investor concerns rose over the BJP securing a majority, which could lead to political uncertainty and contributed to the sharp drop in markets today.

In the PSU sector, stocks like Oil and Natural Gas Corp., Coal India, NTPC, NLC India, Power Grid Corporation, Oil India, SJVN, NHPC, and NBCC (India) declined between 13% and 20%.

In the PSU banking sector, all 12 constituents of the Nifty PSU index saw declines between 14% and 20% in today’s trade. Bank of Baroda led the losses with a drop of 19.6%.

Experts mentioned that the market response was due to the election results falling short of exit polls predictions, causing disappointment among investors. The government’s economic reforms may not be as aggressive as anticipated, with a shift towards ground-level welfare schemes and employment generation.

Despite the market turmoil, the overall growth trajectory is expected to remain stable with a focus on infrastructure development as a consensus strategy in the long run.

The Nifty 50 and Sensex both experienced significant downturns during the trading session, with the Nifty 50 reaching a one-month low of 21,481 points and the Sensex dropping nearly 6% to hit a daily low of 71,805 points.

Disclaimer: The views and recommendations in this article are from individual analysts and do not represent the views of Mint. It is advisable for investors to consult certified experts before making any investment decisions.

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