NALCO, RITES, REC, IRFC, NMDC, Punjab & Sind Bank, MRPL, Power Grid and IREDA were among major gainers on Monday. Over the last six months, NSE Nifty is down by just 1.42 percent. Indian markets also witnessed strong buying from FIIs, a sign considered strongly positive by retail investors. The sentiment has certainly improved but there are still uncertainties due to US-China tariff issues. US Government has delayed tariffs on rest of the world. TopNews Team has reviewed technical levels for the most active Public Sector stocks for traders and short term investors.

NALCO

NALCO's technical structure shows considerable room for recovery from its 52-week low of Rs 137.75. Watch for resistance at Rs 215.15 and Rs 232.16 as price action attempts to re-enter bullish territory. Failure to sustain above Rs 185.59 could expose the stock to a further decline toward Rs 137.75.

RITES

Retracement zones between Rs 295.43 and Rs 319.74 are key for gauging upside conviction. Support stands firm around Rs 271.11; a break below that would weaken the technical setup. A rally beyond Rs 351.51 could renew bullish sentiment and challenge the Rs 398.45 peak.

REC

REC's trend strength is visible with retracement zones offering solid buy zones between Rs 505.68 and Rs 540.68. Price rejection below Rs 470.67 would raise red flags for bullish continuation. Momentum resumption above Rs 579.31 can make Rs 654 a realistic short-term goal.

IRFC

Intermediate resistance lies between Rs 182.79 and Rs 200.45, creating a battleground for bulls and bears. A break above Rs 200.45 would be technically significant, opening up space toward Rs 229.00. Downside protection exists at Rs 154.25, beyond which weakness could intensify.

NMDC

Technical bias remains neutral as long as NMDC trades between Rs 73.25 and Rs 86.97. Clear breakout above Rs 86.97 may rekindle momentum toward Rs 95.45 highs. Support at Rs 73.25 needs to hold to prevent a slide toward the Rs 59.53 base.

Fibonacci Retracement Levels

Gensol Engineering Issue

Gensol Engineering’s alleged financial misconduct has raised questions over India’s public sector financial ecosystem, especially with renewable and infrastructure-focused lenders IREDA and PFC. With loans worth Rs 977 crore exposed—mostly earmarked for electric vehicle procurement—the fallout extends beyond financial risk, raising serious questions about risk assessment and due diligence protocols in public lending institutions.

Promoters Misused Funds and Falsified Compliance

Gensol’s top executives, Anmol and Puneet Singh Jaggi, have been accused of redirecting sanctioned funds to non-permissible avenues, including luxury real estate and personal ventures. Instead of allocating the Rs 663 crore financing for electric vehicles to BluSmart, the EV ride-hailing platform promoted by the same family, funds were reportedly routed through shell entities to obscure actual usage.

The deception was compounded through forged “no objection” letters and fabricated conduct reports submitted to rating agencies and financial institutions to suppress loan default red flags. This web of manipulation has now been flagged by SEBI, resulting in a market participation ban for the promoters.

SEBI Crackdown: Governance Red Flags Trigger Regulatory Action

SEBI’s swift intervention—barring the Jaggis from holding positions in any listed entity—underscores the regulatory body’s hardening stance on corporate fraud. The capital market watchdog has identified gross violations ranging from fund diversion to document forgery, breaching key tenets of disclosure and fiduciary responsibility.

The case also places India’s renewable energy financing under a harsh spotlight, as Gensol operates in a sector critical to India’s decarbonization ambitions. The implication of two state-backed financial institutions amplifies the stakes for regulators and investors alike.

IREDA and PFC Face Mounting Credit Risk

Together, IREDA and PFC sanctioned nearly Rs 977 crore to Gensol over FY22–FY24. Of this, Rs 663 crore was specifically intended to finance EVs for BluSmart’s fleet—a business premise now weakened due to BluSmart’s suspension of lease operations.

With these assets now idle and revenue generation disrupted, lenders are preparing for aggressive recovery measures, including asset auctions and litigation. This exposes IREDA to a potential Rs 625 crore write-off, while PFC could face provisioning of Rs 353 crore—if SEBI’s forensic audit validates the fraud.

Secured Loans Offer Limited Cushion as BluSmart Halts Operations

The silver lining, at least in structure, is that loans extended to Gensol were secured against EV assets, forming a hypothecated lien for IREDA and PFC. However, with BluSmart’s services halted and lease payments suspended, the collateral value has become stagnant.

In response, both lenders are reportedly gearing up to repossess and auction over 5,000 electric vehicles to salvage capital. Market observers note that liquidation may recover a portion of the outstanding dues but will likely not match the original exposure.

Institutional Oversight Comes Under Scrutiny

The magnitude of the default, compounded by falsified documentation, raises inevitable questions: Did IREDA and PFC perform adequate due diligence? Were risk assessment protocols followed, and if so, were internal checks sufficient to detect early signs of malfeasance?

The Reserve Bank of India is expected to initiate its own investigation into lending oversight failures, especially given the scale of state funds at risk. Potential classification of these loans as non-performing assets (NPAs) could further dent the institutions' balance sheets and raise alarms among investors and policymakers.