PSUs lose Rs 2.41 lakh crore in a single day

Mumbai: The selloff in shares of state-owned companies on Tuesday resulted in their total market value eroding ₹2.41 lakh crore in a single day. Following the state election results on December 3, the market capitalisation of public sector companies has gained more than ₹10 lakh crore till Saturday.

The losses incurred on Tuesday represent almost one-fourth of the gains posted since December 3. PSUs such as Rites, STC, HUDCO, Railtel Corp, and Ircon plunged between 10% and 15% on Tuesday. RCF, Engineers India, National Fertilizer, IRFC, IRCTC, Chennai Petro, and General Insurance, among others, declined 8-9%. Market capitalisation of PSUs gained 26% from December 3 till Saturday, compared to the 6% jump in the Nifty 50 index. IRFC's shares surged by 134% during this period, surpassing the market value of companies such as IOC, M&M, Bajaj Auto, and Tata Steel.

According to Amit Goel, Co-Founder at Pace 360, active government reforms in the PSU sector, aimed at improving efficiency and profitability, coupled with plans to divest stakes in select PSUs, attract investor interest and signal a positive outlook for the sector.