PSU stocks were in huge demand on Friday and zoomed up to 22 per cent, led by BHEL, in-tandem with a bullish broader market trend.
On the BSE, shares of BHEL jumped 22.22 per cent, Hindustan Copper climbed 19.66 per cent, MMTC 17.36 per cent, Shipping Corporation of India 9.31 per cent and National Aluminium Company 8.42 per cent.
Also, SAIL advanced 7.90 per cent, NBCC 7.58 per cent, NMDC 6.56 per cent, Rashtriya Chemicals and Fertilizers 6.04 per cent, SJVN 5.57 per cent and Oil India 5.53 per cent.
"BHEL closed up by 22.2 per cent today as news emerged that government is looking to reduce its stake from 63.2 per cent to 26 per cent in the company. Based on the strategic stake sale news of BHEL, other PSUs such as Hindustan Copper, SAIL etc also rallied today in anticipation of government reducing its stake in them as well," Jaipal Shetty, fundamental analyst at Bonanza Portfolio, said.
According to market reports, Cabinet is expected to take up a proposal to reduce the government's stake below 51 per cent in a number of state-owned companies.
Meanwhile, the equity market extended gains for the sixth straight session on Friday, with the benchmark Sensex rising over 246 points.
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