The market capitalisation of public sector undertaking (PSU) stocks declined by Rs 11,067 crore on Monday, reflecting investor dismay over the government's decision to defer divestment in Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) for three months.
The total market capitalisation of 30 listed PSU stocks declined 8 per cent to Rs 1,23,038 crore from Rs 1,34,105 crore on Friday. Hindustan Petroleum tumbled 26.03 per cent to Rs 200.60, its lowest close in eight months.
The stock was one of the most active counters with 77.39 lakh shares traded, the highest seen in about three years. Likewise, Bharat Petroleum plunged 20.43 per cent to Rs 202.10, its lowest close in eight months. As a result, HPCL lost Rs 2,392 crore in market capitalisation to end at Rs 6,797 crore while BPCL lost Rs 1,557 crore in market cap to Rs 6,063 crore.
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ONGC's market capitalisation declined by Rs 2,496 crore to Rs 50,670 crore from Rs 53,166 crore on Friday as the stock lost 4.69 per cent from its close of Rs 372.85 on Friday to Rs 355.35 today.
Other PSU stocks that saw a decline in their market capitalisation today were Indian Oil Corporation (IOC), down by Rs 740 crore to Rs 17,563 crore, Neyveli Lignite by Rs 721 crore to Rs 3,213 crore, National Aluminium by Rs 689 crore to Rs 6,108 crore, Mahanagar Telephone Nigam Limited (MTNL) by Rs 441 crore to Rs 6,955 crore and Gas Authority of India (GAIL) by Rs 271 crore to Rs 5,560 crore.
The BSE Sensex shed 51.64 points to settle at 3,089.47, its lowest close since August 22. But smart gains in Wipro and other technology stocks lifted the broad-based NSE S&P CNX Nifty Index up by 3.35 points to close at 998.55.
Gul Teckchandani, chief investment officer with Sun F&C said, "The privatisation delay has hurt the sentiment. Investors are now waiting with bated breath for the government's next move."
A Mumbai-based broker said, "Investors' pessimism was prompted by fears that the government's privatisation programme, which has been driving the market, could be in jeopardy."
Other state-owned firms also remained weak. Key stocks like MTNL fell 5.96 per cent to Rs 110.40, Nalco dipped 10.14 per cent to Rs 94.80 and Container Corporation lost 10.39 per cent to Rs 250.60. Others like Bharat Electronics, Engineers India and Shipping Corporation also lost ground.
Uncertainty about the government's privatisation programme, which had got off to a good start this year, prompted investors to shift to technology stocks.
Wipro surged 17.92 percent to settle at Rs 1,428.95. Other tech majors, Infosys Technologies gained 1.98 percent to close at Rs 3,604.10 and HCL Technologies jumped 4.37 percent to Rs 212.50 settled with modest gains in an otherwise subdued market on selective buying.