India's state-run companies have turned wealth destroyers with the benchmark for 20 public-sector enterprises slumping into the bear territory.
The Nifty PSE Index has tumbled 20 percent so far this year and plunged nearly 30 percent from its last peak in February—meeting the criteria for bear market on both counts.
Some of the crown jewels of the government—Navratnas and Maharatnas—including Steel Authority of India Ltd., Bharat Heavy Electricals Ltd., Oil & Natural Gas Corporation Ltd. and Coal India Ltd., are trading at more than a decade low.
The PSE Index has eroded nearly Rs 57,000 crore in investor wealth this year, with the 10 worst-performing state-owned firms wiping off nearly Rs 1.62 lakh crore.
National Aluminium Company Ltd. and NMDC Ltd. are at trading at multi-year lows as global prices for steel and iron have corrected. Outside the Nifty PSE Index, Navratnas, including Shipping Corporation of India Ltd., Mahanagar Telephone Nigam Ltd. and NLC India Ltd., have seen the worst selloff in 12 years or more.
Maharatnas
- SAIL: At 2004 levels.
- BHEL: Near 15-year low.
- ONGC: Lowest since March 2009.
- COAL India: Lifetime low.
Navratnas
- SCI: Lowest since 2002.
- Neyveli Lignite: 12-year low.
- MTNL: Below 1993 levels.
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