estate and infrastructure companies, they are struggling to meet their interest payments... Even as they resort to asset sales, they have to part ways with good assets in the current environment which further affects outlook on their future earnings,” added an expert.
The challenging business environment is also expected to hit public sector banks as non-performing loans rise further. Six PSBs — Indian Bank, United Bank, Bank of India, Union Bank , IOB and Punjab & Sindh Bank — have been beaten down because of these fears, with the stocks losing 40% to 60% of their value this year.
Due to weak economic activity and regulatory hurdles, 11 mining and metal companies, including PSUs like Coal India, NMDC, Nalco and SAIL, have also significantly underperformed the market.