In the last two days, shares of Public Sector Undertakings (PSUs) experienced significant sell-offs, causing a drop in stock prices. Analysts predict a further decline due to disappointing third-quarter results, as reported by the Economic Times.
On February 12, both Nifty and Sensex saw a decline of -166.45 and -523.00 points. Nifty PSU bank also dropped by -307.90 points (-4.43%), closing at 6,637.05 points.
The consecutive sessions’ decline led to a total market capitalization loss of Rs 4.07 lakh crore for all State-owned companies. The overall market capitalization is now at Rs 50.21 lakh crore. The Economic Times suggests that this downturn could be an opportunity to buy these stocks.
On the same day, Indian Railway Finance Corp Ltd’s shares fell by 13.21% to close at Rs 133.40 per share on BSE. Rail Vikas Nigam Ltd also experienced an 11.28% drop, closing at Rs 230.
According to the Economic Times, PSU stocks are undergoing a market correction and might continue to face a slump for up to two months, with an expected 10-15% correction in the near future.
The Nifty PSE index dropped by -349.15 points (-3.81%), closing at 8,820.90 points. Major losers included OIL, SAIL, RECLTD, LICI, and NMDC, with drops of -9.13%, -7.63%, -5.26%, and -4.95%, respectively.