Power Finance Corporation, REC fall 10% on merger reports

PFC dipped 10.5% to Rs 91 and REC slipped 10% to Rs 110 on the BSE in intra-day trade.

Shares of state-owned lenders to utilities REC and Power Finance Corporation (PFC) are down 10% each on BSE amid reports that the government is considering merger of these two companies.

REC has slipped 10% to Rs 110, while PFC dipped 10.5% to Rs 91 on BSE in the intra-day trade on Wednesday. In comparison, the S&P BSE Sensex was up 0.61% at 35,730 points at 02:17 pm.

Since October 9, from their recent lows, PFC (up 38%) and REC (up 23%) had outperformed the market by surging more than 20%, against a 3.5% rise in the benchmark index