Dramatic 10% Drop in PFC & REC Stocks: Uncover Investment Opportunities Amid Market Dips

• Power Finance Corporation and Rural Electrification Corporation (REC) stocks continue to decline for the second consecutive day, with the former dropping by an additional 4% and the latter by 2%.
• The sell-off of these stocks follows the Reserve Bank’s proposal for stricter regulations on lending to projects under implementation.
• Analysts believe that these draft norms are intended to mitigate the risks associated with project lending by imposing higher prudential provisions.

Power financing stocks like PFC and REC continue to drop following the Reserve Bank’s proposal for stricter lending regulations, causing investors to question the potential impact on valuation multiples.