New Delhi: Shares of public sector enterprises and state-owned banks tumbled up to 24 per cent Tuesday as vote counting trends showed the BJP may not have a clear majority in the Lok Sabha polls.
The Nifty PSE Indices witnessed a steep decline of 1,856.70 points, or 16.38 per cent, to close at 9,475.10, with the share price of REC tumbling 24.07 per cent to settle at Rs 459 apiece, PFC nosedived 21.62 per cent, Container Corp of India tumbled 19.43 per cent, Bharat Electronics Ltd (BEL) declined 19.21 per cent.
Also, ONGC slumped 16.23 per cent, Coal India declined 13.54 per cent, NTPC went lower 14.52 per cent, and Power Grid slipped 11.98 per cent.
The Nifty PSU Bank Index also plunged 1,211.90 points, or 15.14 per cent, to close at 6,794.25.
Further, share price of Union Bank tumbled 17.65 per cent to end at Rs 140, Bank of Baroda slumped 15.74 per cent, Punjab National Bank declined 15.15 per cent, Canara Bank plunged 13.45 per cent, and State Bank of India (SBI) went lower up to 13.37 per cent.
In the intra-day trade, shares of SBI tumbled up to 19.17 per cent to Rs 731.95 apiece on the NSE.
At the end of the session, the market valuation of SBI stood at Rs 7,00,225.05 crore. During the day, the market capitalisation of public sector lender SBI eroded by Rs 1.08 lakh crore.
The Nifty Bank Index slumped 4,051.35 points, or 7.95 per cent, to finish at 46,928.60. In the intra-day trade, the Nifty Bank index went lower by 4,589.2 points, or 9.61 per cent, to 46,077.85.
Further, the index recorded its biggest fall since February 2022.
Meanwhile, shares of Railtel Corp of India tumbled 14.56 per cent to close at Rs 367, Rail Vikas Nigam Ltd declined 13.16 per cent, and IRCTC slumped 12.27 per cent on the on the bourse.
The defence PSU stocks also tumbled up to 20 per cent, with the share prices of BEML slumped 20 per cent to close at Rs 3,738.85, Bharat Heavy Electricals plunged 18.88 per cent, Hindustan Aeronautics dropped 17.17 per cent.
Meanwhile, Mazagaon Dock Shipbuilders declined 16.20 per cent, Bharat Dynamics Ltd and Cochin Shipyard slipped 10 per cent each on the bourse.
At the end of the session, the 50-share NSE Nifty tanked 1,379.40 points, or 5.93 per cent, to close at 21,884.50.
“In the short term, PSU stocks may lose some momentum, but they should return to the limelight soon. The speed of social reforms may take a hit, depending on how the new government approaches its agenda.
“While the mood on the street is damp now, things could change equally quickly. The uncertainty might create initial apprehension, but there’s potential for significant positive developments once the new government settles in and starts implementing its policies,” Vikram Kasat, Head of Advisory at Prabhudas Lilladher, said.
Trends from counting of votes Tuesday threw up disappointing results for the BJP-led NDA in the Lok Sabha elections, which appears to be losing heavily in its strongholds of Uttar Pradesh, Haryana, and Rajasthan, although it is expected to form the government with about 290 seats.
PTI