At 12:00 PM: the S&P BSE PSU index was down 1% at 7,522, as compared to 0.17% decline in the S&P BSE Sensex. The PSU index hit an intra-day low of 7,506, its lowest level since December 27, 2016.
Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Oil India, Indian Oil Corporation (IOCL) and Oil and Natural Gas Corporation (ONGC) from the oil & gas sector and Allahabad Bank, Syndicate Bank, Union Bank of India, Central Bank of India, Bank of Baroda and Canara Bank from banking space were down in the range of 1.5% to 4% on the BSE.
ONGC was down 2% at Rs 156, trading close to its 52-week low of Rs 155 touched on June 27, 2017 on the BSE in intra-day trade.
“Upstream companies continue to face a catch 22 situation. There is no clarity on sharing of subsidies if oil prices spike. Considering that most of the production of ONGC and Oil India comes from nominated blocks, it is logical that the government may levy some subsidy on them. This would keep their realizations under check,” the brokerage firm Motilal Oswal Securities said in a note.
Coal India, National Aluminium, Power Grid Corporation, ITDC, NTPC, Bharat Heavy Electricals (BHEL), NHPC and MMTC too were trading lower between 1% and 2%. Of these, Bank of Baroda, NTPC, NHPC and SJVN hit their respective 52-week lows on the BSE in intra-day trade today.
Thus far in the calendar year 2018, the S&P BSE PSU index has slipped 18%, against 4.6% rise in Sensex.