New Delhi: PSU stocks have declined by 40-50 per cent so far in November owing to a 10 per cent decline in the Sensex and Nifty. Indian indices are witnessing FII selling pressure as well as the consequences of headwinds from the results of the US presidential polls. Domestic issues related to the economy are also likely to have had an impact on the stock market’s trajectory. PSU stocks have undergone a transformative effect under the Modi government. However, the current state of the market has wiped out significant investor value.
Reasons behind stock market correction
The Sensex and Nifty have undergone a significant correction compared to the September 2024, highs of 85,978.25 and 26,277.35, respectively. Since then, the Sensex has lost 8,553.44 points, while the Nifty was down 2,744 points. Indian indices are witnessing continued withdrawals by FIIs.
While foreign investors initially withdrew funds after China announced a stimulus package to get its economy back on track, it was sustained by the US presidential poll results in which Donald Trump emerged as the undisputed winner. While domestic investors have continued to pile in funds, they have not been able to match the outflows. Muted Q2 earnings have also spooked investors, leading them to keep their powder dry for the near term.
However, amid this bloodbath on Dalal Street, investors can see a silver lining in the brokerage CLSA’s decision to reverse its stance of going overweight in China and choosing to go overweight again in India. This change took place in the aftermath of Trump’s win since his presidency is expected to have a direct impact on Chinese exports.
PSU stocks which declined 40-50%
PSU stocks which were considered multibagger shares earlier have lost nearly 40-50 per cent value since highs achieved in September:
S. No.
Stocks
52-week low
Current prices
1
MTNL
56.40%
44.33
2
Cochin Shipyard Ltd
56.00%
1319.9
3
Chennai Petroleum
54.60%
574.5
4
Garden Reach Shipbuilders
50.40%
1418
5
MSTC
50.00%
578.2
6
MOIL
49.50%
297
7
MRPL
48.40%
148.8
8
SCI
45.80%
208.34
9
New India Assurance Co.
45.80%
176.5
10
Tourism Finance
45.50%
145.88
11
Ircon International
45.50%
192
12
Bharat Dynamics Ltd
44.90%
990
13
Andrew Yule
44.80%
38.03
14
SCILAL Share
43.10%
62.3
15
HUDCO
42.90%
202
16
MMTC Share
42.80%
75.73
17
UCO Bank
41.60%
41.45
18
Mishra Dhatu Nigam
41.50%
322
19
State Trading Corporation
41.20%
148.1
20
Indian Overseas Bank
40.80%
49.52
21
Dredging Corporation
40.80%
862.7
22
Engineers India Ltd
40.70%
180.27
23
NMDC Steel
40.50%
44.05
24
BEML Land Assets
40.50%
225
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
PSU stocks have borne the brunt of stock market correction during the week ending October 16, 2024, which was shortened by a holiday. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
