Public sector stocks — the frontrunner of latest bull rally — contributed nearly a third to the overall market cap erosion on Tuesday, January 23. The combined market valuation of all listed PSUs as of Tuesday’s close stood at close to ₹57 lakh crore, which is a fall of ₹2.5 lakh crore from Saturday’s close.
In comparison, the aggregate market capitalisation of companies listed on the BSE slid ₹7.6 lakh crore to ₹366 lakh crore.
The BSE PSU index, which tracks 56 major public sector undertakings, dropped as much as 4.5% in Tuesday’s trade after investors chose to book some profit following a breathtaking rally, which also had seen the state-owned firms market valuation surge to nearly ₹60 lakh crore.
While the benchmark Sensex slid 1.5% on Tuesday, the BSE Midcap and Smallcap fell 3% and 2.8%, respectively
| PSUs | Drop in Mcap (Rs Cr) |
| LIC of India | -38962 |
| SBI | -23472 |
| IRFC | -19537 |
| ONGC | -15285 |
| COAL INDIA | -14482 |
| IOCL | -12850 |
| POWER FINANCE CORP | -7706 |
| HINDUSTAN AERONAUTICS | -7681 |
| IRCTC | -7332 |
| PUNJAB NATIONAL BANK | -6882 |
LIC – the largest state-owned firm by market capitalisation lost the most with a market cap erosion of ₹38962 crore, that was followed by State Bank of India, with a market cap loss of ₹23,472 crore.
Others PSUs, which lost more than ₹10,000 crore in market capitalisation include Indian Railway Finance Corporation, ONGC, COAL INDIA and IOCL. These four companies along with LIC and SBI saw a market cap erosion to the tune of ₹1.2 lakh crore.
Both SBI and LIC of India clocked their biggest fall in nearly one year. While the shares of SBI slid 4.2% on Tuesday, the stock of LIC of India declined 6.6%.
Among the mid and small cap PSU stocks Ircon International, Railtel Corp Of India, Housing and Urban Development Corporation, State Trading Corporation of India and Rites saw their stock prices plunging anywhere between 10%-14% in Tuesday’s trade.
Barring seven entities, all listed PSUs ended the day in the red. The list include, Petronet LNG, HMT, IFCI and recently listed Indian Renewable Energy Development Agency who could buck the trend with gains ranging between 3.5% to 5.3%.
(Edited by : Anand Singha)
First Published: Jan 23, 2024 9:42 PM IST
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