PSU meltdown continues: Stocks extend bearish streak for 2nd day; Bharat Dynamics hits 10% lower circuit
Also Read: Dabur India, Godrej Consumer Products & others hit a 52-week high today ; Do you own any?Despite the soaring prices, investors had not relented, anticipating a strong mandate for the BJP. They expected the robust capital expenditure to persist, further benefiting PSU stocks.
This anticipation fueled investor optimism, driving continued interest in these stocks despite their expensive valuations.However, the actual election results took a surprising turn, deviating significantly from the predictions of exit polls. Official results, announced late Tuesday, revealed that Modi's Bharatiya Janata Party (BJP) secured 240 seats in the general election, falling short by 32 seats of the halfway mark in the 543-member decision-making lower house.Also Read: Stock Market Crash: Emkay says market correction not deep enough, advises to stay away from PSUs, Capital GoodsDespite this shortfall, the BJP is highly likely to form a government with the support of its allies.
Nevertheless, investors are concerned about the potential impact on policy stability. This apprehension led to a sharp decline in Indian stocks in the previous session, with PSU stocks experiencing the most pronounced downturn, which is continuing in today's trade.
During today's intraday trading, the BSE PSU index witnessed another significant decline of 4.5%. Bharat Dynamics, a potential multibagger, hit its 10% lower circuit limit for the second day in a row at ₹1,293 per share.
Similarly, another PSU gem, NBCC, also dropped 7% to ₹127 apiece. Other notable PSU stocks like Indian Bank, Cochin Shipyard, Engineers India, Mishra Dhatu Nigam, and IRFC are trading with losses ranging between 2% and 5%, respectively.On the positive side, Mazagon Dock
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