PSU stocks have had a significant impact on the benchmark Sensex and Nifty, with the Sensex losing over 450 points. The Nifty Bank index has also fallen below 45,000, while the PSU Bank index has experienced a decline of over 3%. This decline in banking and power PSUs has been felt across sectors, with rail PSUs like RVNL, IRFC, IRCTC, and BEML dropping by 8-10%, while power PSUs like SJVN, NBCC, and NHPC experiencing decreases of 10-20%. Despite this, defensives in the I.T. and pharma sectors have been among the top gainers.
Stocks in focus for investors include Hero Moto Corp, Divi’s Labs, and Honasa Consumers after their Q3 earnings. Brokerages have adjusted their targets for these counters based on their performance. Meanwhile, Nandita Khemka and Yatin Mota discussed the highlights of the trading day on Closing Bell.
The drop in PSU stocks has had a ripple effect on other sectors as well. The decline in banking and power PSUs has affected consumer demand for products from these sectors, which has led to a drop in sales for many companies. This has also led to concerns about inflationary pressures on consumers as prices rise due to higher production costs.
Despite this decline in banking and power sectors, there are still opportunities for growth in other sectors such as I.T. and pharma industries that have seen gains due to increased demand from consumers during the pandemic crisis. These industries are expected to continue growing at a steady pace over the next few months as more people work from home or rely on telemedicine services for healthcare needs.
Investors are keeping an eye on how long this downturn will last before they start investing again heavily in certain sectors such as banking or power industries that are likely to recover soon after this slump is over.
Overall it seems like PSU stocks caused a significant drop in benchmarks but not all sectors were affected equally by this downturn it’s important to keep an eye on individual company’s performance before making any investment decisions