BHEL jumps on sector outlook

DALAL STREET SPIKES

BHEL was in the limelight today on the back of hectic buying activity. The counter hit a 52-week high of Rs 583 before closing at Rs 577.75, up by 4.92 per cent.

More than 2.94 lakh shares were traded on the BSE. The feel-good sentiment seems to be working well for the company with players pointing out that the counter has been witnessing sustained buying amid optimism that the government's reforms would augur well for the power sector.

The government's reforms vide the Electricity Act are expected to electrify the fortunes of power sector companies.

The Act will help improving the health of state electricity boards (SEBs) and putting the power sector on a sustainable growth track.

Analysts say that this will help BHEL improve its financials as it receives a large part (60 per cent) of its revenues from SEBs. The company is also said to have a strong order book.