Punjab & Sind Bank and Central Bank of India crash as April 2 selloff hits Websol, UCO Bank, AstraZeneca and more

On April 2, 2025, Indian equity markets endured a pronounced selloff driven by a convergence of domestic and global concerns. The day’s top stock losers revealed a pattern of sharp corrections across public sector banks, mid-cap counters, and sector-specific names sensitive to policy shifts and macroeconomic conditions. Heavy volumes and swift intraday declines in stocks such as Punjab & Sind Bank, Central Bank of India, and UCO Bank signalled an underlying investor retreat from higher-risk, rate-sensitive sectors.

This widespread pullback wasn’t merely a case of technical profit-booking. Rather, it reflected mounting anxiety over tightening liquidity, delayed interest rate pivots, inflation persistence, and capital deployment bottlenecks across infrastructure, banking, and energy-linked stocks.

Why are public sector bank stocks falling sharply in April 2025?

The steepest declines on April 2 came from India’s public sector banks (PSBs), with Punjab & Sind Bank dropping 12.02% to close at ₹30.67. From an intraday high of ₹35.49, the stock reversed significantly, hitting a low of ₹30.27 on volumes exceeding 3.15 crore shares. Its fall represented one of the most significant one-day drops in the banking sector this quarter.

Central Bank of India mirrored the downward trend, declining 10.97% to ₹36.78 from a previous close of ₹41.31. More than 6.27 crore shares were traded, indicating a sharp increase in selling pressure from institutions. UCO Bank, which has generally held steadier than its smaller peers, slipped 4.17% to ₹29.90, closing below key support levels.

The slump in PSU bank stocks comes amid renewed investor caution surrounding their asset quality, rural exposure, and net interest margin pressures. The Reserve Bank of India has maintained a restrictive monetary policy stance in early 2025, curbing the potential for near-term rate cuts. This, combined with expectations of subdued government spending ahead of national elections, has further dampened prospects for credit growth, particularly in the agriculture and MSME segments where PSBs dominate.

While public sector banks had shown strong stock price recoveries in late 2024, the recent correction underlines concerns that the rally may have outpaced fundamental improvements, especially as gross NPA ratios remain elevated in segments affected by monsoon volatility and delayed subsidy transfers.

What triggered the broad-based selling in mid-cap and sectoral stocks on April 2?

Outside of banking, a diverse set of companies saw their stock prices retreat sharply. The top stock losers on April 2 included PK Tea & Exports Ltd, which fell 8.59% to ₹742.00. The stock dropped steeply after opening at ₹855.00, likely reacting to weak export sentiment as disruptions in the Red Sea trade corridor continue to affect tea shipment flows and delivery timelines to Western markets.

In the pharmaceuticals segment, Wanbury Ltd slipped 5.54% to ₹253.05, weighed down by cost inflation for imported intermediates and operational constraints in scaling up US regulatory submissions. AstraZeneca Pharma India Ltd also lost 4.66% to end at ₹8,097.00. Investors appear concerned about a slow regulatory pipeline and the growing competition in immuno-oncology therapies where AstraZeneca has been active.

The solar and renewable energy segment showed clear signs of fragility. Websol Energy Systems Ltd, a player in solar module manufacturing, declined 5% to ₹1,191.10 after weak commentary on government subsidy timelines for rooftop installations. Similarly, Waaree Energies Ltd dropped 4.24% to ₹2,278.90, reflecting investor unease about its high leverage and execution risk on delayed EPC projects.

Stocks like GENSOL Engineering Ltd, another solar EPC firm, also declined 5%, closing at ₹166.50. Delays in disbursal under the PLI scheme and uncertainty in tariff bidding outcomes have undermined investor confidence in small-cap renewables.

Are broader market signals pointing to risk aversion in Indian equities?

The April 2 downturn saw broader market indices lose ground, but the deepest cuts were concentrated in mid-cap and speculative names. For instance, Blue Jet Healthcare Ltd, a recently listed specialty pharma firm, dropped 5% to ₹798.60, and Shaily Engineering Plastics Ltd, a component supplier to global auto firms, fell by the same percentage to ₹1,689.90. These losses suggest that high-beta stocks are now more vulnerable to derating as liquidity tightens and valuations reset.

Real estate and construction-linked stocks such as Rustomjee (Keystone Realtors Ltd) fell 4.78% to ₹510.20, after a muted outlook for new launches and regulatory delays on land acquisition in MMR and NCR. Meanwhile, RHIM India, a refractories producer for steel and cement sectors, dropped 4.47% to ₹509.80 on fears of slowing industrial activity in Q1 FY26.

Logistics and infrastructure stocks followed suit. BRNL (Bharat Road Network Ltd) dropped 4.29% to ₹29.00, weighed down by uncertainty in government-backed toll contracts. LGHL (Lords Freight) also shed 4.37% amid rising diesel prices and route delays affecting freight margins.

Microcaps like Blue Coast Hotels Ltd, ICDSL Ltd, and AGSTRA all hit circuit filters or showed limited buyer interest, with intraday declines of around 5%. These stocks, although less influential on index performance, often reflect early signs of liquidity drying up in the broader speculative space.

How are global macro trends and policy decisions affecting Indian stock sentiment?

April’s first week has been marked by growing investor concerns about macroeconomic headwinds. Global oil prices climbed past $89 per barrel, increasing fears of imported inflation. The Indian rupee has also come under pressure, testing levels near 84.50 against the US dollar. The combination of expensive oil and a weakening currency is likely to prompt tighter capital controls and hold back the Reserve Bank of India from easing interest rates in the near term.

Meanwhile, US bond yields remain elevated as the Federal Reserve delays any signal of monetary loosening. As a result, emerging markets like India have seen renewed foreign portfolio selling. On April 2, overseas investors remained net sellers, particularly in mid-cap and banking names.

Domestically, India’s March CPI data is expected to show limited relief, particularly with rising food and core inflation. Government spending has moderated ahead of the upcoming general elections, and infrastructure-linked policy announcements have slowed, leaving sectors like power, roads, and construction with fewer immediate catalysts.

What should investors take away from April 2’s top stock losers?

The sharp correction across public sector banks, small-cap stocks, and sectoral laggards underscores a shifting investor sentiment as macroeconomic uncertainty takes center stage. The list of top stock losers on April 2 featured 20 names cutting across banking, pharmaceuticals, renewable energy, logistics, real estate, and manufacturing, suggesting a broad-based reassessment of risk.

While long-term fundamentals may remain intact for several of these companies, the immediate outlook appears clouded by inflation, policy ambiguity, regulatory delays, and external pressures from global markets. For investors, this signals the need for a more selective, fundamentals-driven approach, especially as earnings season nears and market volatility remains elevated.