
Shares of Indian Overseas Bank (IOB) plunged 7.42% in early trade on Wednesday, January 15, closing at ₹49.78, down by ₹3.99 from the previous close of ₹53.77. The stock traded within a day range of ₹49.20 to ₹51.80, reflecting a sharp correction following a strong rally in the previous session.
The decline comes as part of widespread profit booking in public sector banks (PSBs), including Central Bank of India, UCO Bank, and Bank of Maharashtra. These counters saw significant gains in Tuesday’s session, driven by reports of the government potentially approving strategic stake sales in select PSBs. However, clarity on the fundraising mechanism, which will involve a Qualified Institutional Placement (QIP) process starting from March 2024, led investors to lock in profits.
Despite today’s correction, Indian Overseas Bank remains a key player in the banking sector, with a market capitalization of ₹941.15 crore. The recent rally highlighted investor optimism surrounding potential government-led initiatives, but today’s session signals a consolidation phase for PSB stocks following sharp movements.
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