PSU shares in demand

BHEL,Bharat Electronics, BEML, Oriental Bank, Power Finance, Indian Oil, Oil India and Hindustan Copper are up more than 5% each on the BSE.

Shares of public sector undertakings (PSU) companies across all sectors including banks are in demand after the exit polls data showed the Bharatiya Janata Party led National Democratic Alliance (NDA) is set to cross the magic mark of 272 in the just-concluded elections.

Bharat Heavy Electricals Limited (BHEL), Bharat Electronics, BEML, Oriental Bank of Commerce, Power Finance, Indian Oil, Oil India and Hindustan Copper are among few have rallied more than 5% each on the BSE.

The S&P BSE PSU index, a gauge for state-owned shares, has rallied nearly 4% as compared to 1.6% rise in benchmark S&P BSE Sensex at 1050 hours.

“Exit polls have predicted the NDA to be the largest pre-poll formation to form the next government in Delhi which is in line with market’s expectations.  However in view of the rally to historic highs, the possibility of an up move from these levels would depend on the incremental seats that can be won by the NDA over the consensus exit poll range of 257-280” Dinesh Thakkar, chairman and managing director, Angel Broking says on exit polls.

If NDA's tally surpasses UPA's 259, the new government may well be one of the strongest in recent times with the party not needing to go in for any hard bargaining with post-poll allies.

Among the individual stocks, BHEL has zoomed 16% to Rs 230, followed by Dredging Corporation (12% at Rs 366), Uco Bank (10% at Rs 89), Central Bank of India (8% at Rs 57.25), Syndicate Bank and Shipping Corporation of India are up 6% at Rs 111 and Rs 44 respectively.