Shares of tumbled 10.5 per cent on Tuesday, closing at ₹81.22 on the NSE, as prolonged uncertainty over the government’s proposed stake sale continues to weigh on investor sentiment. The stock touched an intraday low of ₹79.05 before recovering marginally, with the traded volume surging to 690.74 lakh shares worth ₹571.93 crore.
The sell-off comes amid a delay on strategic disinvestment, where the government and LIC together plan to offload a combined 60.72 per cent stake in the bank. The strategic sale process had earlier stalled after bids failed to meet the government’s reserve price. Canada-based Fairfax Holdings has been the reported contender.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, attributed the fall to disinvestment-related overhang. “The uncertainty around the disinvestment is creating overhang on the stock. The market has been waiting for an early resolution, but with no proper resolution in sight, it is creating selling pressure in the short to medium term,” he said.
Abhinav Tiwari, Research Analyst at Bonanza, noted the stock has been highly sensitive to disinvestment-related news flow. “IDBI Bank fell 12.4 per cent. The stock has been highly sensitive to news around the government’s proposed stake sale. Earlier, the strategic sale process was delayed after bids failed to meet the government’s reserve price,” he said.
Concerns over the deal’s structure have also resurfaced. EAS Sarma, former Secretary to the Government of India, warned in a letter to Finance Minister Nirmala Sitharaman that the transaction could trigger a mandatory open offer under SEBI’s takeover regulations, and raised red flags over foreign ownership limits, Fairfax’s existing stake in CSB Bank, and employee service conditions.
On a technical basis, Bank Nifty closed at its lowest since July 2026, slipping below its 20-day, 50-day, and 100-day EMAs, with immediate support seen at 56,300.