Divestment concerns, FII unloading hit HPCL

DALAL STREET SPIKES

PSU major HPCL was one of the big loser in the 30-share BSE Sensex on the back of heavy selling by foreign institutional investors.

The stock in intra-day trades touched a low of Rs 448.20 before closing at Rs 457.55 with volumes accounting for more than 13.20 lakh shares at the BSE.

Most PSU stocks, including HPCL, is facing selling pressure since the exit polls after the second phase predicted gains for the Congress party.

Market analysts said, in the event of uncertainty till the elections, investors are cautious of holding PSU stocks in their portfolio.

HPCL has lost more than 12 per cent from Rs 512.10 on April 23 to today's low of Rs 447. The fall in HPCL and other PSU stocks followed concerns that the disinvestment process is likely to hit a roadblock, if the current government does not regain power, said analysts.