PSU shares up on govt stake sale hopes

Shares in state-run companies MMTC,  Hindustan Copper and Dredging Corp of India surged 8-11% on hopes that the government would initiate stake sales in these companies.

Those expectations come state-run National Building Construction Corp, a consultant for civil construction and real estate projects, said it aimed to raise up to Rs 127 crore through a share sale that will see the government divest itself of a 10% stake.

The government has been looking to pare its holdings in state firms, but it has been thwarted by the weakness in markets.

The government's stalled divestment programme also calls for reduced stakes in other state-run firms such as Bharat Heavy Electricals and Steel Authority of India Limited.