The Hindu Business Line : Bank, PSU stocks nosedive 6% as budget disappoints

MUMBAI: Bank and PSU stocks on Monday gave a thumps down to the Union Budget and dipped as much as six per cent after the Finance Minister said that banks and insurance firms will remain in the public sector.

The Banking index of the Bombay Stock Exchange dipped 6 per cent to a low of 7917.40 points and the PSU index dropped 4 per cent to 7862.32 points. Bank stocks nosedived with IDBI Bank tanking 10 per cent and the State Bank of India registering decline o f over 5 per cent, Punjab National Bank dropped 2.78 per cent, OBC (3.77 per cent), Bank of Baroda (1.95 per cent), Bank of India (3 per cent), Canara Bank (2.50 per cent).

Meanwhile, PSU stocks also witnessed a downward trend with Oil and Natural Gas Corporation dipping 5 per cent, while MMTC plunged 4.48 per cent, NMDC fell 4 per cent and BHEL and NTPC dipped nearly 3 per cent.

Marketmen said the plunge in the PSU stocks was largely because the government did not give any clear roadmap on the disinvestment programme. Private sector banks also plunged into the negative territory with country's largest private lender ICICI Bank r egistering a fall of nearly 10 per cent and HDFC Bank dipped 5.7 per cent. - PTI

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