Concessions for sector charge up Tata Power

DALAL STREET SPIKES

Sustained buying interest over the last few sessions has pushed up the Tata Power scrip on the bourses.

The counter hit an all-time high of Rs 419 before closing at Rs 405.60, up by 6.24 per cent on Friday. More than 43.04 lakh shares were traded on the BSE.

The counter has been in the limelight over the last few months. Certain funds are said to be actively buying at the counter.

Friday's rise is attributed to the tax sops provided to the power sector in the interim budget (announced on 8 January 2004).

Marketmen say the reduction in custom duty from 25 per cent to 10 per cent on power transmission and distribution projects will help Tata Power.

Power reforms are on the upward swing in the country, and the cut in custom duties on power transmission and distribution projects will bring down the cost for power companies.

A cut in customs duty for imported coal which is widely used by power transmission and distribution companies for generation of electricity will also help.