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Nifty PSU Bank index falls for fourth day in a row; Three stocks at 52-week lowAs a result of the fall in PSU Banks, three stocks, Punjab & Sind Bank, Indian Overseas Bank, and UCO Bank, have declined to a 52-week low.By Hormaz Fatakia   March 16, 2026, 11:00:07 AM IST (Updated)2 Min ReadThe Nifty PSU Bank index continues to decline for the fourth day in a row on Monday, March 16, declining another 0.6% after a drop of nearly 4% last Friday. All constituents of the index are now trading with losses.

The index has declined in eight out of the last 10 trading sessions.

Rising bond yields have had a significant impact on PSU Banks. India's 10-year bond yield, is currently at 6.68%, mainly due to a rise in crude oil price due to the war in West Asia, has hurt shares of PSU Banks. The yield on the 10-year had surged to nearly 6.8% during last week's sell-off.

For PSU Banks, they typically hold large portfolios of government securities. Most of these are generally held under Hold-to-Maturity (HTM) format, but a significant chunk is also held under the Available For Sale (AFS) form. You can on how PSU Banks get impacted due to the rising bond yields, right here.

For the month of March, the PSU Bank index is down 14%, and has given up all the gains it made during the first two months of 2026. All 12 constituents of the index are down for the month with losses ranging between 12% to as low as 16% for stocks like Bank of Maharashtra and UCO Bank.

The losses in March are turning out to be the worst monthly drop for the PSU Bank index since September 2020, during which the index had declined by 16%.

As a result of the fall, three stocks, Punjab & Sind Bank, Indian Overseas Bank, and UCO Bank, have declined to a 52-week low.

The PSU Bank index itself, which had hit a high of 9,918 on February 26 this year, has corrected 14% from those levels, thereby entering a "technical correction" in market terminologies. An index or stock enters a "technical correction" if it falls 10% from the highs.Continue ReadingFirst Published: Mar 16, 2026 10:50 AM ISTTags10-year bond yieldsBank of MaharashtraIndian Overseas Bank IOBNifty PSU BankPunjab and Sind BankSBI share priceshare market todayUCO Bank