PSU pack bleeds with Mazagon, RVNL, Cochin Ship plunging up to 8% in market selloff

Shares of PSU (Public Sector Undertakings) have lately been very popular among investors. However, on August 5, shares of companies like RVNL, IRFC, Mazagon Dock, and NBCC decreased by up to 8 percent.

The BSE PSU and CPSE indices, which follow these companies, also fell by up to 4 percent, just like the Sensex and Nifty. All the stocks in these indices were down.

This fall happened because of bad news from around the world. The job data in the US was disappointing, which makes people worry about a recession there. Also, a rate hike by the Bank of Japan caused worries of a reverse carry trade in Yen.

Even though the market looks bad right now, experts believe India’s long-term growth is still strong. Atul Parakh, the CEO of Bigul, said that the fundamentals of India’s economy are solid.

RVNL saw the biggest decline among PSU stocks, falling about 8 percent. Indian Railway Finance Corporation Ltd and IRCON International Ltd both went down 7 percent. RailTel Corporation’s shares also dropped by almost 7 percent. Mazagon Dock Shipbuilders’ shares fell over 6.5 percent, similar to other state-run companies.

Also Read: PSU stocks HUDCO, Cochin Shipyard among 13 additions into FTSE All-World index

Cochin Shipyard, Shipping Corporation of India, and Garden Reach Shipbuilders Ltd. beat their lower circuit of 5 percent each. The Great Eastern Shipping Company stock also dropped by nearly 5 percent.

Defense PSU stocks like Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, and BEML fell by up to 6 percent. NBCC India dropped over 7 percent in the early session, and MMTC was down by 6.5 percent. Housing & Urban Development Corporation (HUDCO) also fell by 6 percent.

Other important PSU stocks, including Life Insurance Corporation of India, BHEL, SJVN, NLC India, GIC, SAIL, Coal India, Power Finance Corp, and Hindustan Copper, tumbled around 6 percent each.

Atul Parakh suggested investors to wait to buy stocks. He advised waiting for better prices. He recommended investing in companies with strong fundamentals and high growth potential at good prices. He also said it is a good idea to sell over-valued stocks due to the current market situation.

According to Vishnu Kant Upadhyay from Master Capital Services, the market is possible to recover from these lower levels. He said that every market drop should be seen as a chance to buy stocks for long-term investment.

Click here to get the latest updates about RVNL shares.

People May Ask

What is the Future of RVNL Share?

RVNL (Rail Vikas Nigam Limited) shares are predicted to do well in the future. The company’s shares have already increased a lot this year, by almost 233%. This is because RVNL is getting new projects and doing a good job on existing ones.

Experts believe that by the end of next year, the share price might go up even more, going between ₹894.34 and ₹920.44.

Is RVNL Overpriced?

Some people think RVNL shares are expensive, but this does not mean they are too expensive. Even though one expert group gave it a ‘Neutral’ rating, others are still positive about the company’s future.

The high price shows the market’s expectation that RVNL will continue to perform good because it has many projects and is also making good progress.

What is the Highest Share Price of RVNL?

The highest price that RVNL shares have ever reached is ₹647.00. This means that at one point, the value of the shares was very high due to the company doing well and getting new projects.

What is the Record Date for RVNL Dividend?

The exact date for RVNL’s dividend record is not confirmned yet. However, the company has recently announced a dividend of 21.10%, which shows they are doing good and sharing profits with their investors.

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