Even as the Sensex closed down 58.16 points at 16,440.56, PSU stocks continued to make waves on Dalal Street following the government’s bold plans on the disinvestment front. NMDC shares shot up by 20 per cent to Rs 433.70 on Tuesday as the government indicated that it would bring down its stake below the 90 per cent level in the PSU. The BSE PSU Index moved up by 1.97 per cent.

NMDC stock has risen 26 per cent in the last three trading sessions. Its market capitalisation has zoomed by nearly Rs 50,000 crore to Rs 172,000 crore since last Friday. MMTC, another disinvestment candidate, soared by 4.63 per cent on Friday to Rs 38,019.60.

Its market cap has shot up by Rs 40,000 crore to Rs 190,000 crore in three sessions. Among other PSU stocks, STC rose by 8.69 per cent and Hindustan Copper by 5.79 per cent. “As the government owns almost the entire stake in these companies, it has become richer in notional terms following the rise in PSU shares,” said an analyst.

However, telecom stocks dropped on a bleak outlook for the sector due to growing competition and a price war. Bharti Airtel, India’s leading mobile operator, fell 4.47 per cent to Rs 293.75 and Reliance Communications shed 2.9 per cent to Rs 169.05.