PSU Stocks Crash: Has the bull run that started in government companies during the Covid period ended? We are saying this because due to the fall in the Indian stock market on Monday, October 7, 2024, due to selling by foreign investors, the stocks of government employees have been hit the hardest. Nifty’s CPSE index is trading with a decline of 3.11 percent, while Nifty’s PSE index is also trading with a decline of 2.82 percent. Railway-defense stocks have been hit the most due to investor selling, which have given strong returns to investors in the last few months. In the year 2023, in the Parliament, Prime Minister Narendra Modi had suggested investors to invest in shares of government companies. But in the storm of decline, PSU stocks are now falling heavily.
Railway shares collapsed
Due to selling by investors, a sharp decline is being seen in railway stocks. Shares of Rail Vikas Nigam Limited (RVNL) are trading at Rs 460, down about 7 per cent. Stock of Railtel Corporation of India is also up by 7 percent, RITES is up by 4.60 percent, Ircon International is up by 4 percent, IRFC is up by 4 percent, Titagarh Railsystems is up by 3 percent. Trading is on decline.
Defense stocks boomed
The rise in government stocks of the defense sector, which is considered the darling sector of the stock market, has also come to a halt. Shares of Garden Rich Shipbuilding are trading with a decline of about 6 percent, Mazagon Dock Shipbuilding 3.22 percent, Cochin Shipyard 3.76 percent, Hindustan Aeronautics Limited 1.16 percent, Bharat Dynamics 4 percent, Bharat Electronics 2.45 percent.
Sharp selling in power sector shares
Sharp selling is also being seen in power sector stocks which have given strong returns to investors in recent years. In this, NTPC is trading with a decline of 3.68 percent, NHPC 3.34 percent, Power Grid 3.14 percent, SJVN 5.29 percent, REC 3.68 percent, Power Finance Corporation 4.15 percent, IREDA 4.18 percent. LIC shares are trading with a decline of 3.86 percent.
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There was an outcry in midcap and smallcap stocks due to selling by foreign investors, investors lost Rs 10.50 lakh crore.
