Shares of public sector undertaking (PSU) companies made major moves on exchanges, ralling by up to 25 per cent on the BSE, on Friday on the back of heavy volumes.
Shares of Bharat Heavy Electricals (BHEL), Hindustan Copper, MMTC and The New India Assurance Company surged more than 11 per cent, while MOIL, NBCC (India), NLC India, General Insurance Corporation of India (GIC Re), National Aluminium Company, Steel Authority of India (SAIL), IFCI and Shipping Corporation of India (SCI) jumped in the range of 5-10 per cent on the BSE.
Furthermore, Bharat Electronics (up 7 per cent at Rs 121) and India Tourism Development Corporation or ITDC (up 4 per cent at Rs 368) hit their respective 52-week highs in the intra-day today.
At 10:28 am, S&P BSE PSU index was up 1.5 per cent at 6,812 points, as compared to a 0.40 per cent rise in the S&P BSE Sensex. In the past one week, the PSU index has soared 5.5 per cent as against a 2.7 per cent gain in the benchmark index.
Prior to current week, the S&P BSE PSU index had slipped 19 per cent from its 52-week high of 7,954, touched on June 4, 2019. In comparison, the S&P Sensex was down 5 per cent during the same period.
According to Business Standard report, the Cabinet Committee on Economic Affairs (CCEA) is next week expected to take up a proposal to reduce the government’s stake in a number of state-owned companies below 51 per cent. This move is different from privatisation as the Centre will continue to hold a majority stake in these companies and they will still be classified as public sector enterprises. CLICK HERE TO READ FULL REPORT
Among the individual stocks, shares of BHEL surged 25 per cent to Rs 55.65 on the BSE in the intra-day deals on Friday amid reports the government may look to reduce stake in the company. The stock recorded its sharpest intra-day rally in more than a decade. Earlier, on May 18, 2009, it had zoomed 29 per cent in the intra-day trade on the BSE.
According to hindi business news channel CNBC Awaaz, Centre may consider bringing down its stake in state-owned BHEL and National Mineral Development Corporation (NMDC). The stake in BHEL may be pared in tranches to 26 per cent from 63.17 per cent now. An inter-ministerial group is expected to meet soon to discuss the stake sale, the channel reported, quoting sources.
Similarly, the stock of New India Assurance has zoomed 56 per cent in the past one week, while GIC Re has surged 34 per cent after a news report suggested that insurance sector posted a substantial growth rate in premiums.
|B H E L||54.70||44.55||22.8|
|NEW INDIA ASSURA||151.50||136.50||11.0|
|J & K BANK||32.20||29.65||8.6|
|S A I L||35.10||33.55||4.6|
|H U D C O||34.65||33.20||4.4|
|R C F||49.75||48.00||3.7|
|S C I||44.50||42.95||3.6|
|G M D C||60.10||58.20||3.3|