PSU power stocks, including REC & PowerGrid, fall up to 4.5% after Lok Sabha Election results

Stocks in the PSU power sector continued to plummet on Wednesday after the results for the Lok Sabha Elections 2024 were announced.

REC Limited shares were down 3.2% to ₹437.4 on the NSE. The scrip opened at ₹472 and hit an intraday low of ₹408.3 on June 5. The company's market capitalisation stands at ₹1.15 lakh crore.

Power Finance Corporation Ltd, which finances the PSU power sector, was also down 2.9% to ₹414.2.

The Nifty Energy index fell 1.1%, or 441 points, to 37,213, dragged down by Coal India, IOC, BPCL, Power Grid, NTPC, and others.

Meanwhile, NSE NIFTY50 and BSE SENSEX opened in the positive territory on Wednesday, gaining 1.1% and 1.3%, respectively.

The decline in PSU power stocks comes when Bhartiya Janata Party (BJP)-led National Democratic Alliance (NDA) has crossed the majority mark but with reduced mandate, way below the exit poll predictions.

The BJP has won 240 seats, while Telugu Desam Party (TDP) and Janata Dal (United) have won 16 seats and 12 seats, respectively. On the other hand, the INDIA bloc, comprising Congress, Samajwadi Party and others, has won 234 seats.