PSU stocks experienced a significant decline today due to stricter regulations proposed by the Reserve Bank of India (RBI) on projects under implementation. The RBI’s guidelines mandate a 5% general provision for all existing and new project loans in the construction phase, with provisions gradually decreasing to 1% under certain conditions when projects enter the operational phase. This news led to a sell-off in PSU stocks, with companies such as Power Finance Corporation (PFC), Rural Electrification Corporation (REC), and Indian Renewable Energy Development Agency Limited (IREDA) witnessing declines of up to 13.6%. PSU banks like Canara Bank, Punjab National Bank, Bank of Baroda, and Bank of India also witnessed sharp falls of over 5%. The Nifty PSU index fell 4.3% to 7,202 points, and the BSE PSU index dropped 3.4% to 19,760 points, with 54 constituents trading in the red.
Results for: PSU Stocks
Shares of State Bank of India (SBI) witnessed a strong rebound after intensified buying in the PSU segment on Thursday, leading to a new lifetime high of 806 per share. Experts attribute the rise to strong buying in PSU stocks and the potential benefits to large banks like SBI from RBI’s recent guidelines on Kotak Mahindra Bank. SBI is anticipated to deliver robust Q4 results in 2024, further fueling its share price growth.