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.
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.
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Shares of other state-run firms also declined in trade on Tuesday.
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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.
