PSU bank stocks: Stock market update: PSU banks' shares are suffering heavy losses; the sector index dipped by 4%

NEW DELHI: The actions of PSU banks suffered heavy losses in Tuesday's session.

PSU banks' actions came under pressure as the government proposed the merger of three banks – Bank of Baroda, Vijaya Bank and Dena Bank – to create the country's third-largest lender. The councils of the three banks will now review the proposal.

The Nifty PSU Bank traded 3.87% at 2.938 around 1 pm, with all components in the red.

Bank of Baroda (-13.2%), Union Bank of India (-6.87%), Indian Bank (-6.42%) and Canara Bank (-6%) were the main losers of the Nifty index PSU Bank.

Bank of India (down 4.33%), Syndicate Bank (down 4.19%), Andhra Bank (down 3.69%), Punjab National Bank (down 3.19%), Oriental Bank of Commerce (down 3.15%), IDBI Bank (down 2.67%), State Bank of India (down 2.61%) and Allahabad Bank (down 0 , 49%) declined in this order.

The domestic stock market has been mastered amid weak Asian indices.

The NIFY50 NSE benchmark remained stable at 11,379, while the BSE Sensex index rose 8 points to 37,594.

Of the 50 titles in the Nifty Index, 22 were trading in the green and 28 in the red.

Hindustan Unilever, YES Bank, Titan Company, Dr. Reddy's Laboratories and Adani Ports were among the top winners of the Nifty Index.

State Bank of India, Hindalco Industries, India Coal, Tech Mahindra and Indian Oil Corporation were among the biggest losers in the Nifty title group.