The sector’s correction or consolidation is indicated by the BSE PSU Index’s 13% decrease from its peak of 22,814 at the end of July. Just 3% was the decline in the benchmark Sensex during the same time frame. A robust surge in PSU stocks preceded this fall. The BSE PSU Index increased by 94.5% over the year ending July 31 while the Sensex increased by 23%. The Sensex increased by 55.4% over the three years ending July 31st, while the BSE PSU Index increased by 195%. The benchmark Sensex has not been surpassed by the BSE PSU Index, even after the current downturn.
Except for NALCO, Orissa Minerals, and Bank of Baroda, all 86 listed PSU shares fell between July 31 and the present day, with losses ranging from 2% to 45%. Cochin Shipyard was the biggest loser, with a 45% decline. Despite this drop, the stock has returned 114% in 2024 and 176.8% this year.
The second-biggest loser was MTNL, whose share price fell 41.6% between July 31 and November 8. Chennai Petroleum, down 37.4%; Shipping Corporation of India, down 37.3%; and Garden Reach Shipbuilders, down 36.6%, are other notable losers.
On the other hand, the share price of NALCO has increased by 23% since July 31. It produced an 81% return so far in 2024, and it surged by 154% in the last 12 months. The stock of Orissa Minerals increased by 12.5%, whereas the Bank of Baroda only saw a slight 1% increase.
Between July 31 and the present, the 86 PSU stocks’ total market capitalization has decreased by Rs 9.69 lakh crore, or 13%, to Rs 63.86 lakh crore. With a Rs 1.55 lakh crore decline in market capitalization, LIC led all PSUs in this regard. With a market value loss of Rs 53,492 crore, Coal India came in second, followed by Indian Oil Corporation, which lost Rs 52,813 crore.
