Cochin Shipyard, Engineers India, Bharat Dynamics and NBCC (India): From scaling heights to touching lower circuits, the rise and fall of PSU stocks

PSU stocks such as Engineers Limited, Cochin Shipyard, Bharat Dynamics, NBCC, and Hindustan Aeronautics Limited (HAL) continued to bleed after the outcome of the 2024 Lok Sabha election results as they tanked 10 per cent or more, with many of them touching lower circuits. Here's a list of PSU stocks that bit dust on BSE on Wednesday (June 5, 2024).

Engineers India

After closing at Rs 222.90 previously, the stock slipped by 14.67 per cent to Wednesday's low of Rs 190.20.

Engineers India shares were trading lower by 2.78 per cent, or Rs 6.20, at Rs 216.70 each on Wednesday.

Cochin Shipyard

The PSU stock which was scaling new heights every other day before the election results touched the lower circuit of 10 per cent for the second day in a row. 

The stock touched the lower two times on Wednesday, slipping to the day's low of Rs 1,630.55.

The defence PSU stock closed trading lower by 7.00 per cent lower, or Rs 126.90, at Rs 1,684.80.

Bharat Dynamics 

The defence PSU stock is suffering the same fate as Cochin Shipyard as it also touched the lower circuit of 10 per cent for the second day in a row.

It slipped to the day's low of Rs 1293.35.

Bharat Dynamics shares closed trading lower by 9.19 per cent, or Rs 132.05, at Rs 1305.00 each on Wednesday.

NBCC (India)

The PSU also touched the lower circuit for the second day in a row as it tanked by 9.99 per cent to the day's low of 122.00.

NBCC (India) shares closed trading lower by 4.02 per cent, or Rs 5.45, at Rs 130.10 each. 

Hindustan Aeronautical Limited

The defence multibagger that hit the lower circuit many times on Tuesday slipped by 9.66 per cent to Wednesday's low of Rs 3,918.50.

Hindustan Aeronautical Limited shares, however, recovered in the afternoon, closing up by 0.62 per cent, or Rs 26.75, at Rs 4,364.2505.

HAL tanked despite CLSA maintaining an 'outperform' stance on it, raising its target to Rs 4,731 from Rs 3,225.

Should you invest in PSU stocks? Know expert and brokerage view

A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, "PSU stocks may see some more correction However, it may find buyers at the fall as they are all becoming efficient in the business model."

On the other hand, brokerage IIFL says that investors should avoid the defence sector for now. 

It says that high valuation may have an impact on PSUs stocks.