The shares of several defence and real estate companies, as well as public sector banks dropped in trade on September 18 as investors may have resorted to profit booking at elevated levels.
The three sectors earlier saw significant surge due to multiple factors.
Defence stocks:
The Nifty Defence index dropped around 0.6 percent to 8,266.95, as seen at 2 pm. The index has now snapped a four-session gaining streak.
Astra Microwave Systems shares were the top losers on the index, dropping nearly 2 percent to trade at Rs 1,088.50 apiece. Data Patterns, Solar Industries and Paras Defence shares fell over 1 percent each, while BEML, Bharat Dynamics (BDL), Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) shares fell nearly 1 percent each.
The defence stocks had seen significant rise earlier, following the Defence Ministry's approval of the new Defence Procurement Manual (DPM) 2025. The revised framework aims to expedite revenue procurement for the armed forces, encourage domestic industry participation and align processes with modern warfare requirements, reported CNBC-TV18.
Realty stocks:
The Nifty Realty index dropped slightly to 918.75, also snapping a four-session gaining streak. This comes despite rising hopes for a rate cut by RBI's MPC after its American peer Federal Reserve decided to slash its policy repo rate by 25 basis points.
Prestige Estates shares were down more than 1 percent, while DLF and Anant Raj shares were trading in the red with marginal losses.
Also read: Gurugram real estate market faces 'affordability' challenge, says Nuvama
PSU Bank stocks:
The Nifty PSU Bank index dropped over 0.3 percent to 7,292.95, snapping a three-day gaining streak. The shares had earlier risen amid buzz over the government's plan to divest stakes in five state-owned banks through the Offer for Sale (OFS) route. Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sind Bank have been shortlisted for partial stake sale in the coming months.
M Nagaraju, Secretary, Department of Financial Services, said on September 16 that there was no proposal to reduce the government’s stake in public sector banks below 51 percent. "There is no proposal to cut government stakes in PSU banks below 51 percent. We want to be the majority shareholder," he said at the Banking Transformation Summit organised by CNBC TV18.
Punjab & Sind Bank (PSB) and Union Bank of India shares were the top gainers on the index, rising more than 1 percent each. Indian Overseas Bank (IOB), Bank of India, UCO Bank and Canara Bank shares rose nearly 1 percent each, while Central Bank of India, State Bank of India (SBI), Punjab National Bank (PNB), Indian Bank and Bank of Maharashtra shares were trading in the red with marginal losses.
Also read: Our LIVE blog on stock market updates
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