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BSE PSU index hits highest level since December 2010; SAIL, BHEL up over 8%

Engineers India, NLC India, IFCI, Union Bank, NMDC, IDBI Bank, Corporation Bank and PNB were up in range of 5% to 8% on the BSE

SI Reporter  |  Mumbai 

PSU stocks
PSU stocks

Shares of public sector undertaking (PSU) companies including banks are on a roll with the hitting nearly seven-year high after strong rally in metal, banking, oil & gas sector stocks.

At 01:17 PM; the S&P was up 1.5% at 9,539, as compared to 0.11% rise in the benchmark S&P BSE Sensex. The PSU index hit an intra-day high of 9,657, its highest level since December 3, 2010 on the BSE.

Steel Authority of India (SAIL) and Bharat Heavy Electricals (BHEL) were up more than 10% each in intra-day trade, while, Engineers India, NLC India, IFCI, Union Bank of India, NMDC, IDBI Bank, Corporation Bank and Punjab National Bank (PNB) from the index up in the range of 5% to 8% on the BSE.

In an attempt to support credit growth and fuel job creation, the government on Tuesday decided to take a massive step to capitalise public-sector banks (PSBs,) in a front-loaded manner.  The government has announced a large re-capitalisation programme of Rs 2.1-lakh-crore for state-owned banks.

“This would help remove the binding constraint faced by state-owned banks in resolving the bad loan problem and meet the new capital adequacy norms by FY19. The proposed move will likely help re-rate state-owned banks from their depressed valuations,” analysts at IIFL Institutional Equities said in note.

The government also reinforced its commitment to providing the country with more efficient transportation by launching a mega road building programme of Rs 6.92-lakh-crore.

The latest announcement provides a positive push to the infrastructure segment in the economy. The government will have to draw a definitive road-map for the timely completion, fund mobilization as well as streamlining of bottlenecks like land acquisition for the programme to be beneficial, according to the rating agency CARE Ratings.

S A I L 76.00 66.95 13.5
HIND.ORGAN.CHEM. 20.95 19.05 10.0
B H E L 98.30 90.60 8.5
ENGINEERS INDIA 170.35 157.95 7.9
MADRAS FERT. 29.90 28.10 6.4
NLC INDIA 100.60 94.55 6.4
M T N L 21.35 20.10 6.2
NMDC 128.30 121.10 6.0
HMT 38.15 36.35 5.0
S T C 182.75 174.95 4.5
T N TELECOM. 1.23 1.18 4.2
F A C T 43.10 41.35 4.2
NBCC 256.00 246.60 3.8
HIND.COPPER 70.25 67.80 3.6
BHARAT IMMUNOLOG 23.30 22.60 3.1

First Published: Thu, October 26 2017. 13:31 IST