PFC Share Price

Why REC, PFC, and IREDA Stocks Are Plummeting: RBI's Impact on PSU Financiers

Find out why REC, PFC, and IREDA shares are falling up to 13% and how RBI's new regulations are affecting the market!

The stock market witnessed a sharp decline in the shares of REC, PFC, and IREDA, with prices plummeting by as much as 13%. The recent nosedive stemmed from the draft RBI guidelines on project finance, which have sent shockwaves through the PSU financers. The stringent regulations, including raised provisioning requirements during project construction, have significantly impacted the valuation of these stocks. Investors are on high alert as the market reacts to the new rules, causing a stir in the financial sector.

The repercussions were swift as PFC shares plunged by 12.40%, hitting a low of Rs 420.85 on the BSE. Similarly, REC shares were down by 5.58% at Rs 526.55, and IREDA stocks slipped by 3.73%. The adverse effects of RBI's proposals have reverberated across the market, leading to a widespread decline in the prices of these PSU stocks. Traders and analysts are closely monitoring the situation as the implications unfold, reshaping investment strategies in response to the changing landscape.

In a surprising turn of events, PFC and REC had experienced significant gains in the past year. PFC surged over 240%, while REC saw a remarkable increase of over 300%. Meanwhile, IREDA witnessed a substantial growth of 187% in just the last six months. The sudden downturn raises questions about the sustainability of their previous successes amidst the current market turbulence. As market dynamics shift, it becomes crucial for investors to adapt to the evolving conditions to navigate the uncertainties that lie ahead.

In a related development, PSU bank shares, including REC, PFC, and IREDA, faced significant losses in recent trade sessions. The impact was not limited to banks, as infra-related NBFCs like REC, IREDA, and PFC also experienced downturns of over 10% and 6%. The intricate interplay between regulatory changes and market reactions continues to shape the financial landscape, presenting challenges and opportunities for investors seeking to navigate the ever-changing market trends.