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Shares of six PSU companies rose by 1.35% to 7.88% at 14:41 IST on BSE in anticipation of hefty dividend announcement by these companies.

Syndicate Bank (up 7.88%), Allahabad Bank (up 7.44%), Union Bank of India (up 4.76%), Coal India (up 4.7%), IDBI Bank (up 4.21%) and Indian Bank (up 1.35%), edged higher.

The S&P BSE Sensex was up 66.37 points, or 0.32% at 20,759.61.

Union Bank of India's board will meet today, 8 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.

Syndicate Bank's board will meet on 9 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.

Indian Bank's board will meet on 10 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.

Allahabad Bank's board will meet on 11 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.

IDBI Bank's board will meet on 13 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.

Coal India's board will meet on 14 January 2014, to consider payment of interim dividend, if any, for the year ending 31 March 2014.

The market is abuzz with rumours that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year.

India's fiscal deficit touched Rs 509557 crore during April-November 2013, or 93.9% of the annual target. The government had fixed the fiscal deficit, which is the gap between expenditure and revenue, at Rs 542499 crore for the current financial year ending 31 March 2014.

The government is committed to limiting the fiscal deficit to 4.8% of gross domestic product (GDP) in the current financial year, compared with 4.9% of GDP last year.

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