The benchmark equity indices, Sensex and Nifty, experienced a steep decline from their intra-day highs, driven by rising crude oil prices amid ongoing tensions in West Asia and consistent foreign fund outflows, which have weighed heavily on investor confidence.
Meanwhile, IDBI Bank shares were trading at Rs 78.60, reflecting a sharp loss of 15%. The stock hit an intraday low of Rs 77, marking a significant 16% drop from its previous close of Rs 92.18. Here are some reasons for the fall.
The biggest reason for the sharp drop in the stock price is reports that the Government of India and LIC may scrap the planned sale of their majority stake (over 60%) in IDBI Bank because the bids received were below the minimum price expectation. This stalled or potentially halted privatisation has spooked investors.
According to CNBC TV18, under the disinvestment rules, the government may not be able to accept bids that fall short of the reserve price, which could stall the privatisation process.
This led to a sharp fall of 16% in the stock of IDBI Bank.
Although the primary driver now is the stakesale news, banking stocks in general were down in trade, with the Midcap index dropping nearly 1.5%. This could have aggravated selling pressure in the stock.
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