PSU Stocks Slump As Election Race Tightens Unexpectedly
The Nifty PSU Bank closed 15.14% lower, while it fell as much as 19.51% on an intraday basis.
![<div class="paragraphs"><p>State Bank Of India SBI Bhavan at Nariman Point in Mumbai. (Photo: Vijay Sartape/ Source: NDTV Profit)</p></div>](https://media.assettype.com/bloombergquint%2F2024-06%2F85043c10-3f67-4920-ab2c-63c02327440b%2FState_Bank_Of_India_SBI_Bhavan_at_Nariman_Point_in_Mumbai_210119__3__jpeg.jpg?rect=0%2C0%2C720%2C405&auto=format%2Ccompress&w=200)
Shares of most public sector enterprises plummeted in morning trade on Tuesday following a two-day rally. Initial election result trends indicated a narrow win for the Bharatiya Janata Party-led NDA, as they trailed in key battleground states.
The Nifty PSU Bank index closed 15.14% lower, while it fell as much as 19.51% on an intraday basis. The index rose as much as 9.03% during the rally on Monday.
Union Bank led the decline, with a fall of 17.65%; followed by Central Bank and Punjab and Sind Bank, which saw a fall of around 16.32% and 15.9%, respectively.
The 50-stock benchmark index Nifty ended 5.93% lower.
![PSU Stocks Slump As Election Race Tightens Unexpectedly](https://media.assettype.com/bloombergquint%2F2024-06%2Fb6581c20-7f71-4d67-80e8-be83c2089517%2Fchart%20(3).png?auto=format%2Ccompress)
Shares of other state-run firms also declined in trade on Tuesday.
![PSU Stocks Slump As Election Race Tightens Unexpectedly](https://media.assettype.com/bloombergquint%2F2024-06%2Feb07f769-7dbf-49a5-b405-bdcded5aea25%2Fchart%20(5).png?auto=format%2Ccompress)
Shares of Bharat Electronics Ltd. and Oil and Gas Corp. saw a decline of 19.21% and 16.23%, respectively. A few other top losers during market close were NLC India Ltd., NTPC Ltd. and Coal India Ltd.