PSU shares under pressure; S&P BSE PSU index declines 3%

Hindustan Copper, BHEL, IDBI Bank, HMT, MMTC, National Aluminium, Power Grid, Syndicate Bank, IOB and BEML are down more than 5% each on BSE

Shares of public sector undertakings (PSU) companies are under pressure with the Bombay Stock Exchange (BSE) S&P BSE PSU index tanked over 3% in noon deals.

Hindustan Copper, BHEL, IDBI Bank, HMT, MMTC, National Aluminium, Power Grid Corporation, Syndicate Bank, Indian Overseas Bank and BEML have plunged more than 5% each, while Oriental Bank of Commerce, Union Bank of India, NTPC, Power Finance Corporation, NMDC and Vijaya Bank are down 4-5% on BSE.

S&P BSE PSU index has dipped 3.3% compared to 1.1% decline in benchmark S&P BSE Sensex at 1410 hours.

Shares of Oil and Natural Gas Corporation (ONGC) has dipped nearly 4% to Rs 399, its lowest level since June 3, 2014 on BSE, on reports that the government is planning  to sell 5 to 10% stake in state-run energy explorer. The government currently holds a 68.94% stake in ONGC.

A draft proposal of the finance ministry's Department of Divestment to the Cabinet Committee on Economic Affairs has suggested a 5% divestment, the Economic Times report suggests.