Tata Power charges up on power trading nod

DALAL STREET SPIKES

Tata Power witnessed a smart pull back after the recent hammering on news that the company has been granted license for power trading. The stock was among the biggest gainer among the Sensex stocks with gains of over 7 per cent.

The stock after hitting the day's high of Rs 239.65, finally closed 7.02 per cent higher to close at Rs 237.70. More than 32.38 lakh shares changed hands at the counter at the BSE.

Tata Power was badly hit since the recent MERC ruling on the dispute of sharing standby charges between TPC and Reliance Energy which went against TPC.

Additionally, the counter witnessed aggressive selling over the past two months on concerns that the Electricity Act will be reviewed.

The power sector stocks had been in limelight over the last one year following the passage of the Electricity Act 2003, which was aimed at bringing in path-breaking reforms to the power sector.