PSU banks plunge up to 20% amid war fears
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- PSU banks index fell nearly 16% in the month since the war began on Feb 28, with individual stocks down up to 20% and none delivering positive returns.
- Punjab National Bank (PNB) fell nearly 5% to a session low of Rs 105.01, making it the worst loser among the 12 PSU banks.
- Bank of Baroda (BoB) and other lenders such as Canara Bank, Punjab & Sind Bank (PSB) and UCO Bank each declined by over 4%, with UCO Bank down 20% as the biggest laggard.
- Nifty fell 400 points intraday, a 1.7% decline, as investors reacted to war fears and a record‑low rupee.
- BSE Sensex dropped 1,650 points to 73,621.17, eroding all‑India market capitalisation by Rs 8 lakh crore to Rs 423 lakh crore.
- Indian rupee fell to 94.79 per dollar, breaching its previous all‑time low of 93.98, and has declined about 3.5% since the war began.
- US President Donald Trump announced a postponement of an attack on Iran’s energy facilities and delayed the deadline for Tehran to open the Strait of Hormuz to April 6, but the move failed to lift market sentiment.
Why it matters: Investors in Indian public‑sector banks bear the brunt, as their holdings fell up to 20% while the broader market shed Rs 8 lakh crore in capitalisation, and the rupee’s slide erodes foreign‑currency buying power, tightening liquidity for corporate borrowers and amplifying risk for equity portfolios.
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