BSE PSU index hits 22-month high; Power Grid, IOC, HPCL hit record high

Total 12 PSU stocks include NTPC, NHPC, SAIL, Moil and MMTC hit their respective 52-week highs

Shares of public sector undertaking companies (PSUs) were in focus with the S&P BSE PSU index hitting 22-month high on Thursday in intra-day trade after strong gain in electric utilities and oil & gas stocks.

At 11:57 am; the S&P BSE PSU index was up nearly 1% at 8,128.13 as compared to 0.20% rise in the S&P BSE Sensex.

 

The PSU index hit a 52-week high of 8,149.86 in intra-day trade today, surpassing its previous high of 8,077.73 touched on November 10, 2016. The index was trading at its highest level since March 4, 2015, when it touched high of 8,263.33 during intra-day trade.

Total 12 PSU stocks include NTPC, NHPC, Steel Authority of India (SAIL), Moil and MMTC hit their respective 52-week highs, while, Bharat Electronics, Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOC) and Power Grid Corporation of India hit lifetime highs on the BSE.

Since November 8, post demonetization scheme, the S&P BSE PSU index has outperformed the market by gaining 5.4% against 1.3% decline in the Sensex.  From the recent low on December 26, the PSU index gained 9.5% against 5.5% rise in the benchmark index.

The brokerage firm expects utilities companies to post double digit growth in their net profit for the quarter ended December 31, 2016 (Q3FY17), while upstream companies Oil and Natural Gas Corporation (ONGC) and Oil India are expected to report sequentially stronger earnings on better net realization.

“Power demand in Q3FY17 was better year on year, even though plant load factors (PLF) were tepid, owing to increased generation capacity. Power Grid’s earnings growth is estimated to remain healthy on expected pick up in commissioning activity.  NTPC is likely to report marginal fall in earnings quarter on quarter owing to weak thermal PLFs, partially offset by marginally better realizations,” Edelweiss Securities said in Q3 earnings preview.

Bharat Electronics was up 3% to Rs 1,569 on the BSE in intra-day trade, extending its 8% gain in past four trading sessions. The state-owned company on Tuesday said the board of directors of the company will meet on January 27, to consider the proposal for sub-division of equity shares of the company of face value of Rs 10 each.

COMPANY	LATEST	52 WK HIGH	PREV HIGH	PREV DATE
BHARAT ELECTRON	1562.50	1568.90	1549.50	11-Jan-17
DREDGING CORPN.	477.5	482.85	466	05-Jan-17
H P C L	489.50	498.50	492.75	11-Jan-17
I O C L	355.75	359.80	355.00	06-Jan-17
MMTC	72.55	73.85	71.60	09-Jan-17
MOIL	421.80	429.00	428.60	11-Jan-17
NATL. ALUMINIUM	73.00	74.65	72.50	11-Jan-17
NHPC LTD	28.35	28.40	28.35	02-Dec-16
NLC INDIA	86.75	88.50	86.35	03-Nov-16
NTPC	170.20	170.60	169.95	19-Aug-16
POWER GRID CORPN	198.40	199.70	196.40	17-Nov-16
S A I L	56.15	56.85	56.60	11-Jan-17