PSU stocks see a sharp turn on the negative path for the second straight session, eroding investor wealth of nearly Rs 5 lakh crore combined in two trading sessions. This comes in after a sharp rally in most of these PSU stocks, including the country’s largest public lender SBI and also the country’s largest insurer, LIC, which rallied to hit an all time last week, significantly above its IPO price.
According to data available on exchanges, nearly Rs 3.5 lakh crore of investor wealth was wiped off in today’s trade against Rs 1.5 lakh crore of erosion witnessed on Friday. Analysts are of a view that this profit booking was expected after an unprecedented rally in some of these stocks in the recent past. The Nifty PSE index has fallen 6.5% in the last two sessions, this against a 40% rally in the last 3 months itself.
Shares of NHPC, PFC, REC, SAIL, IOC, and HAL slipped anywhere between 7% to 20% in trade. Furthermore, stocks like SJVN and IRFC hit their lower circuit bands in trade on Monday. In terms of market capitalisation, LIC’s market capitalisation fell by over Rs 50,000 crore in the last 2 days, IRFC witnessed a fall of Rs 38,000 crore in last 2 days, IOCL saw a decline of Rs 24,000 crore and NHPC’s market capitalisation fell by nearly Rs 20,000 crore in the last two trading sessions.
